Items Appear on the Income Statement in Which Order

question 42

Multiple Choice

Items appear on the income statement in which order?

• A) Extraordinary items, Discontinued operations, Other revenues and expenses
• B) Discontinued operations, Extraordinary items, Other revenues and expenses
• C) Other revenues and expenses, Discontinued operations, Extraordinary items
• D) Other revenues and expenses, Extraordinary items, Discontinued operations

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Definitions:

Unlevered Value

The value of a firm that is not affected by the decisions of financing, such as the use of debt.

Tax Rate

The fraction of earnings or profits that is subject to taxation for individuals or companies.

Total Debt

The sum of all liabilities and financial obligations a company owes.

Unlevered Firm

A company or business that operates without the use of borrowed money or debt in its capital structure.