Which of the following statements is(are) correctly stated? I. The write-off of intangible assets generally should be reported as part of continuing operations but disclosed in the notes as an extraordinary item. II. For an item to be disclosed in the notes as extraordinary but presented as part of continuing operations in the profit or loss, the event or transaction which gave rise to it should either be unusual in nature or infrequency of occurrence. III. An income statement is usually not sufficient to describe the total change in equity during a period. IV. The income statement of a period should include and properly describe all items of income and expenses that do not result from transactions with owners. V. An income statement is sufficient to describe the total change in owners’ equity during a period because changes arise from sources other than profit-oriented activities. a. I, III, V b. I, III, IV c. III, IV d. III only
24. Which of the following statements is(are) correctly stated?
I. The write-off of intangible assets generally should be reported as part of continuing operations but disclosed in the notes as an extraordinary item.
II. For an item to be disclosed in the notes as extraordinary but presented as part of continuing operations in the profit or loss, the event or transaction which gave rise to it should either be unusual in nature or infrequency of occurrence.
III. An income statement is usually not sufficient to describe the total change in equity during a period.
IV. The income statement of a period should include and properly describe all items of income and expenses that do not result from transactions with owners.
V. An income statement is sufficient to describe the total change in owners’ equity during a period because changes arise from sources other than profit-oriented activities.
Step by step
Solved in 2 steps
