Execucomp Corporation's Financial Statements in the Current Year Show a Loss

question 116

Multiple Choice

Execucomp Corporation's financial statements in the current year show a loss from discontinued operations, a retrospective restatement. If Execucomp income statement is prepared according to generally accepted accounting principles (as illustrated in your text) , which of the following four items would appear second in sequence in the income statement?

• A) Retrospective restatement.
• B) Profit from continuing operations.
• C) Loss from discontinued operations.
• D) Extraordinary gain.

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Definitions:

Merchandiser

A business or person that purchases goods to sell them at retail or wholesale, making a profit through the markup on sold goods.

Cost of Goods Sold

Costs directly linked to the creation of products sold by a business.

Fraud

Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Employee Fraud

Dishonest activities conducted by employees to provide them with an advantage, financial or otherwise, at the expense of their employer.