In Preparing the Financial Statements for 2009, an Accountant Improperly

question 72

Multiple Choice

In preparing the financial statements for 2009, an accountant improperly classified a gain from discontinued operations as an extraordinary item. Which of the following amounts would be incorrect as a result of this improper classification?

• A) Profit for 2009.
• B) Ending retained earnings at December 31, 2009.
• C) Profit from continuing operations for 2009.
• D) None of the above would be incorrect.

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Definitions:

Communication

The act of transferring information from one place, person, or group to another, effectively and efficiently.

Propagation

The act of reproducing, spreading, or increasing in number, commonly used in the context of plants, diseases, ideas, or information.

Collaboration

The action of working with someone to produce or create something, involving joint intellectual effort.

Articulation

The clarity and effectiveness with which thoughts, feelings, or concepts are expressed, or the process of making such expressions clear.