For Income Reporting Purposes, Items Can Appear in Any of the Following

question 24

Essay

For income reporting purposes, items can appear in any of the following components of the income statement, the statement of retained earnings, and related schedules and footnotes:
a. income from continuing operations or supporting schedules
b. results from discontinued operations
c. statement of comprehensive income
d. statement of retained earnings
e. disclosure
Several items of accounting information are listed below:
____ 1. Selling expenses
____ 2. Loss on sale of plant assets
____ 3. Unrealized losses due to market value changes in available-for-sale equity security investments
____ 4. Cash dividends declared on common stock
____ 5. Unrealized gains due to foreign currency translation adjustments
____ 6. Interest revenue
____ 7. Loss on sale of a major component of the business
____ 8. How a company defines cash and cash equivalents
Required:
By placing the letters a-f) in the spaces provided above, identify where the information would be most appropriately reported. If the information would not appear in any of the above components, place an X) in the space.

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Definitions:

Adipose Tissue

Connective tissue specializing in fat storage.

Simple Squamous

A single layer of flat cells that contributes to various membranous barriers in the body, such as in the alveoli of lungs or the linings of capillaries.

Stratified Squamous

Refers to a type of epithelial tissue consisting of several layers of flat cells designed to protect underlying tissues in areas subject to abrasion.

Epithelial Tissue

Sheetlike animal tissue that covers outer body surfaces and lines internal tubes and cavities.