The Order of Presentation of Items That May Appear on the Statement

question 73

Multiple Choice

The order of presentation of items that may appear on the statement of comprehensive income is

• A)Other comprehensive income, Discontinued operations, Income before income taxes.
• B)Discontinued operations, Other comprehensive income, Income before income taxes.
• C)Income before income taxes, Discontinued operations, Other comprehensive income.
• D)Income before income taxes, Other comprehensive income, Discontinued operations.

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

Credit Policies

Guidelines that set out the criteria for extending credit to customers, including terms of payment and interest rates.

Switching

The process of changing from one product, service, technology, or supplier to another, often assessed for cost benefits or efficiency gains.

Net Present Value

A financial metric that calculates the value today of future cash flows, discounted at a particular rate.