The Nonoperating Section of the Income Statement Includes

question 24

Multiple Choice

The nonoperating section of the income statement includes:

• A) Extraordinary items.
• B) Extraordinary items and discontinued operations.
• C) Extraordinary items, accounting principle changes, and discontinued operations.
• D) Extraordinary items, accounting principle changes, discontinued operations, and prior period adjustments.

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Definitions:

Monetary Unit Assumption

An accounting principle that assumes transactions and events can be represented in monetary units or currency.

Economic Entity Assumption

An accounting principle that treats a company as a separate entity from its owners for financial reporting purposes.

Business Career

A professional path that involves working in the commercial sector, which may encompass a wide range of roles and industries.

Accounting Study

The systematic and comprehensive recording of financial transactions pertaining to a business, and the process of summarizing, analyzing and reporting these transactions to oversight agencies and tax collection entities.