How Are Discontinued Operations and Extraordinary Items Reported on the Income

question 1

Multiple Choice

How are discontinued operations and extraordinary items reported on the income statement?

• A)Discontinued operations and extraordinary items are added together as one line item.
• B)Both items are reported net of taxes and as separate line items.
• C)Discontinued operations are reported net of taxes as a separate line item.Extraordinary items are not reported net of taxes,but they are reported as a separate line item.
• D)Discontinued operations are not reported net of taxes,but they are reported as a separate line item.Extraordinary items are reported net of taxes as a separate line item.
• E)Both items are not reported on the income statement.

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Definitions:

Exact Interest

Interest calculated based on a 365-day year, used to provide a precise interest computation.

360-Day Year

A financial calculation convention using a simplified year of 360 days to facilitate easier interest calculations.

Exact Interest

A method of calculating interest based on a 365-day year or actual number of days in a loan or investment period, providing a precise interest calculation.

365-Day Year

A conventional method of calculating interest based on a 365-day year, often used in financial calculations.