Which of the Following Items Need Not Be Reported Separately

question 40

Multiple Choice

Which of the following items need not be reported separately at the bottom of the income statement?

• A) Profitability ratios
• B) Discontinued operations
• C) Extraordinary gains and losses
• D) Cumulative effect of a change in accounting principle

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Definitions:

Fixed Asset Turnover Rate

A financial ratio that measures how effectively a company is using its fixed assets to generate sales.

Total Asset

The sum of a company's current and non-current assets, representing the company’s total owned resources.

Annual Sales

The total revenue a company generates from its operations over a one-year period.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, indicating the financial performance in a given period.