131.An extraordinary item can result from
a.a segment of the business being sold
b.corporate income tax being paid
c.a change from one accounting method to another acceptable accounting method
d.a transaction or event that is unusual and occurs infrequently
132.Which of the following is considered an unusual item affecting the prior period’s income statement?
a.a change in accounting principles
b.fixed asset impairments
c.an extraordinary item
d.discontinued operations
133.Which of the following should be classified as an extraordinary item on the income statement?
a.gain on a sale of a long-term investment
b.loss due to discontinued operations
c.restructuring charges
d.loss resulting from an infrequent natural disaster
134.A loss due to a discontinued operation should be reported on the income statement
a.above income from continuing operations
b.without related tax effect
c.below income from continuing operations
d.as an operating expense
135.A change from one acceptable accounting method to another is reported
a.on the statement of retained earnings, as a correction to the beginning balance
b.on the income statement, below income from continuing operations
c.on the income statement, above income from continuing operations
d.through a retroactive restatement of prior-period earnings
136.Which of the following items should be classified as an extraordinary item on an income statement?
a.gain on the retirement of a bond payable
b.loss from hurricane damage in Iowa
c.loss due to a discontinued operation in Colorado
d.selling treasury stock for more than the company paid for it
137.Which of the following items appear on the corporate income statement before income from continuing operations?
a.cumulative effect of a change in accounting principle
b.income tax expense
c.extraordinary gain
d.loss on discontinued operations