Gains and Losses That Are Neither Unusual nor Infrequent Are

question 118

Multiple Choice

Gains and losses that are neither unusual nor infrequent are reported as:

• A) Part of continuing operations in after-tax dollars.
• B) A prior period adjustment on the statement of retained earnings.
• C) A gain or loss from disposing of the discontinued segment's net assets.
• D) A gain or loss from operation of a discontinued segment.
• E) Part of continuing operations in before tax dollars.

---

Definitions:

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends, but with dividends paid after preferred shareholders.

Absorbed Firm

A company that has been merged into or acquired by another company, ceasing to exist as an independent entity.

Proxy Contest

A struggle for control of a company, wherein competing parties seek to secure the votes of shareholders through proxy solicitation.

Shareholder Votes

The mechanism by which shareholders express their opinions or make decisions on corporate matters, typically exercised at annual meetings.