Given below are several items that will be reported on a company's financial statements.Select the letter of the proper financial statement reporting section listed as a through f.You may use each letter more than once or not at all.
-Manufacturing circuits were determined obsolete and had to be written down to a nominal scrap value due to an improved manufacturing process
A) Income from continuing operations section of the income statement
B) Discontinued operations section of the income statement
C) Extraordinary items section of the income statement
D) Cumulative effect of a change in accounting principle section of the income statement
E) A separate comprehensive income item
F) Not reported on the income statement or comprehensive income statement

Question

Quizplus · Accepted Answer

The write-down of obsolete manufacturing circuits due to an improved manufacturing process is considered part of the normal operations of a company and thus is reported in the income from continuing operations section of the income statement. This reflects the expense associated with the loss in value of the circuits.

Given Below Are Several Items That Will Be Reported on a Company's