Question

1. Comprehensive income differs from net income in that it includes events that are recognized but...

1. Comprehensive income differs from net income in that it includes events that are recognized but not realized.

Select one:

True

False

2. Which of the items listed below would appear closest to the bottom of the income statement?

A. Unusual and infrequent non-recurring items

B. Prior period adjustment

C. Income from continuing operations

D. Discontinued operations

Homework Answers

Answer #1

Ans.1 true

Comprehensive income is calculated by adding net income and other items that must bypass the income statement because they have not been realized (Like - unrealized holding gain).

Ans.2 option D

Unusual and infrequent non- recurring items are the part of continuing operations.

Prior period adjustments are reported in balance sheet.

Continuing operations are reported before the discontinued operations.

So the correct answer is Discontinued operations.

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