171. Which of the following is considered an unusual item affecting the prior period’s income statement?
A. Change in accounting principles
B. Fixed asset impairments
C. Extraordinary item
D. Discontinued operations
172. 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.
173. A loss due to a discontinued operation should be reported in the income statement
A. above income from continuing operations.
B. without related tax affect.
C. below income from continuing operations.
D. as an operating expense.
174. When a company changes from one acceptable accounting method to another, the change is reported
A. in the statement of retained earnings, as a correction to the beginning balance.
B. in the income statement, below income from continuing operations.
C. in the income statement, above income from continuing operations
D. through a retroactive restatement of prior period earnings.
175. Which of the following items should be classified as an extraordinary item on a corporate income statement?
A. Gain on the retirement of a bond payable
B. Gain from land condemned for public use
C. Loss due to an discontinued operation
D. Selling treasury stock for more than the company paid for it
176. 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