Solved

Match Each Item to Financial Statement Reporting Section That Will

Question 85

Matching

Match each item to financial statement reporting section that will be reported on a company’s financial statements,You may use each choice more than once or not at all.

Premises:

Responses:

A gain due to an early payoff of debt that had a high interest rate

Income from continuing operations section of the income statement

A loss of plant assets incurred by a company whose distribution warehouse is located on an island that has experienced severe flooding three times in the past 5 years

Discontinued operations section of the income statement

A $1 billion loss due to a permanent shutdown of the company’s only subsidiary, Coastal, Inc, triggered by poor product development

Cumulative effect of a change in accounting principle section of the income statement

A foreign currency translation gain at yearend

A separate comprehensive income item

Not reported on the income statement or comprehensive income statement

Premises:

A gain due to an early payoff of debt that had a high interest rate

A loss of plant assets incurred by a company whose distribution warehouse is located on an island that has experienced severe flooding three times in the past 5 years

A $1 billion loss due to a permanent shutdown of the company’s only subsidiary, Coastal, Inc, triggered by poor product development

A foreign currency translation gain at yearend

Responses:

Income from continuing operations section of the income statement

Discontinued operations section of the income statement

Cumulative effect of a change in accounting principle section of the income statement

A separate comprehensive income item

Not reported on the income statement or comprehensive income statement

Correct Answer:

Premises:

Responses:

Income from continuing operations section of the income statement