Which Section Includes Income Derived from a Firm's Primary Business

question 5

Multiple Choice

Which section includes income derived from a firm's primary business activities as well as from activities peripherally related to operations? (Assume the firm expects these sources of earnings to continue.)

• A)income from continuing operations
• B)income, gains, and losses from discontinued operations
• C)extraordinary gains and losses
• D)retained earnings
• E)paid-in-capital

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Definitions:

Compounded Semi-annually

Refers to the process where interest is calculated and added to the principal sum of a deposit or loan twice a year.

Compounded Monthly

A method of calculating interest where the accrued interest is added to the principal sum each month, so that each successive calculation includes interest on the interest.

RRSP

A Registered Retirement Savings Plan, which is a retirement savings and investing tool for employees and the self-employed in Canada.

Compounded Annually

Interest on an investment that is calculated once a year and added to the principal sum of the investment.