Answer the following statements true (T) or false (F)
1. On the income statement, earnings per share is shown for income from continuing operations.
2 The income from continuing operations helps investors make predictions about the company's past
performance.
3. Interest revenue and interest expense are not included in the calculation of income from continuing
operations.
4. Income tax expense is added to arrive at income from continuing operations.
5. The disposal of a business segment is reported as discontinued operations.
1. TRUE
2. FALSE - Explanation: The income from continuing operations helps investors make predictions about the company's future earnings.
3. FALSE - Explanation: Interest revenue and interest expense are included in income from continuing operations.
4. FALSE - Explanation: Income tax expense is added to arrive at income from continuing operations.
5. TRUE
You might also like to view...
Which of the following is a "don't" when attempting to improve communication?
A. Occasionally nod in agreement. B. Lean toward the speaker. C. Speak in a quiet, reassuring tone. D. Smile and show animation. E. Close your eyes.
An observation that does not fit a model is called
A. a martingale. B. an anomaly. C. a random walk. D. a beta coefficient.
Unfair advertising causes a consumer to be "unjustifiably injured" or that violates public policy.
According to a survey of purchasing agents, it is most important during a sales call for a professional salesperson to:
A. demonstrate knowledge of the buyer's product line. B. use high-pressure techniques. C. develop friendships with customers. D. provide a solid marketing plan. E. speak about the competition.