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:

Liquidity

The ability of an asset to be quickly converted into cash without significantly affecting its price.

Default Risk

The possibility that a borrower will fail to meet the obligations of a loan agreement.

Interest Rate Risk Premiums

Additional returns demanded by investors to compensate for the risk of fluctuating interest rates.

D Credit Rating

A rating indicating that an entity is in default, having failed to fulfill its credit obligations, the lowest possible rating in assessments of credit risk.