In preparing the financial statements for 2009, an accountant improperly classified a gain from discontinued operations as an extraordinary item. Which of the following amounts would be incorrect as a result of this improper classification?

Question

Quizplus · Accepted Answer

An extraordinary item is reported net of tax in a separate section of the income statement. Thus, the improper classification of the gain from discontinued operations as an extraordinary item would not affect profit for 2009, ending retained earnings at December 31, 2009, or profit from continuing operations for 2009.

In Preparing the Financial Statements for 2009, an Accountant Improperly