An Extraordinary Item Should Be Reported Separately as a Component

question 14

Multiple Choice

An extraordinary item should be reported separately as a component of income

• A)After discontinued operations of a component of a business
• B)Before discontinued operations of a component of a business
• C)After cumulative effect of accounting changes and after discontinued operations of a component of a business
• D)After cumulative effect of accounting changes and before discontinued operations of a component of a business

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Definitions:

Profit Center

A decentralized unit in which the manager has the responsibility and the authority to make decisions that affect both costs and revenues (and thus profits).

Budget Performance Report

A report comparing the actual financial performance with the planned or budgeted amounts, often highlighting variances for analysis.

Cost Center

A business division that incurs costs but directly does not generate revenues, its performance being measured through cost control.

Level of Management

The different stages or tiers in an organization's hierarchy, each with specific responsibilities, ranging from top executives to middle managers to front-line supervisors.