Which of the Following Statements About the Multistep Income Statement

question 95

Multiple Choice

Which of the following statements about the multistep income statement is not correct?

• A)The multistep income statement provides a subtotal of Income before Income Tax Expense.
• B)Income from Operations is the amount of revenues minus expenses from the company's main business activities.
• C)Any revenues and/expenses from activities other than the company's main business are peripheral results and are included in Income from Operations.
• D)Income before Income Tax Expense and Income from Operations are different if there are any peripheral revenues and expenses.

---

Definitions:

Projected Benefit Obligation

A measurement of the present value of future pension liabilities, based on expected future salary increases.

Prior Service Cost

A pension expense that arises when a company grants retroactive benefits to employees, recognized over the service period of the employees.

Pension Expense

The cost recognized by an employer for maintaining a defined benefit pension plan for its employees, encompassing various components such as service cost and interest cost.

Actuarially Determined

Calculations made based on actuarial methods and assumptions, often used in determining pension liabilities and insurance premiums.