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A Paleontologist Discovers the Fossilized Heart of an Extinct Animal

question 30

Multiple Choice

A paleontologist discovers the fossilized heart of an extinct animal. The evidence indicates that the organism's heart was large, was well-formed, and had four chambers, with no connection between the right and left sides. Which of the following conclusions is best supported by these observations?


Definitions:

Extraordinary Items

Events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence.

Cumulative Effect

The total impact of a change in accounting principle on the net income reported in prior periods, if that change had been applied retrospectively.

Accounting Principle

A fundamental guideline or rule that underpins the financial reporting and accounting practices.

Common Shares Outstanding

The total number of shares of a corporation's stock that are currently owned by investors, including those held by institutional investors and company officers.

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