The FASB Requires That ________ and ________ Need to Be

question 185

Multiple Choice

The FASB requires that ________ and ________ need to be separated from the regular earnings of a business.

• A)other revenues and expenses; extraordinary items
• B)discontinued operations; other revenues and expenses
• C)extraordinary items; discontinued operations
• D)extraordinary items; changes in accounting principle

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Definitions:

Common Stock

Common stock signifies ownership in a corporation, granting holders a vote in corporate matters and a portion of the company's earnings via dividends.

Treasury

The department within a government or corporation responsible for managing monetary assets and debt obligations.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with predetermined dividend payments.

Cumulative

Describing something that increases or accumulates over time, often used in reference to dividends or data.