Which of the following statements about nonrecurring and other special items is correct?
A. Interest Expense is shown net of tax as part of Other Comprehensive Income.
B. Nonrecurring items such as discontinued operations are presented above the income tax expense line on the income statement.
C. Some special items, such as changes in the value of certain balance sheet accounts, are excluded from the calculation of net income.
D. Discontinued operations are reported net of tax as part of the income from continuing operations.
Answer: C
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When a client has significant and nonrecurring charges to nonoperating expenses, which of the following would be the most appropriate materiality benchmark?
a. Net profit. b. Income from continuing operations. c. Cash inflows. d. Cash outflows.
Eliminations appear on the books of
a. the subsidiary company only. b. neither the parent company nor the subsidiary company. c. both the parent company and the subsidiary company. d. the parent company only.
Which of the following occurs when one Web site gives a commission to another for referring customers?
A) Business to business brokerage B) E-intermediary selling C) Drop shipping D) Limited merchant wholesaling E) Syndicated selling
Suppose that the manager of a company has estimated the probability of a super-event sometime during the next five years that will disrupt all suppliers as 0.23%
In addition, the firm currently uses three suppliers for its main component, and the manager estimates the probability of a unique-event that would disrupt one of them sometime during the next five years to be 1.4%. What is the probability that all three suppliers will be disrupted at the same time at some point during the next five years? A) 4.4203% B) 0.2300% C) 4.4300% D) 0.2297% E) 0.2303%