Identify the section to be presented in the last of the income statement.

Question

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Answer 1

Question

Chapter 13, Problem 1SSQ

To determine

Identify the section to be presented in the last of the income statement.

Expert Solution & Answer

Answer to Problem 1SSQ

Option (a): extraordinary items

Explanation of Solution

Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. An income statement consists of the following four items in respective order.

1. Gross profit
2. Income from continuing operation
3. Income from discontinued operation
4. Extraordinary items

Explanation for the given options:

a) Extraordinary items are the last section of the income statement. Thus, this option is correct.

b) Gross profit is calculated in the first step of the income statement. Thus, this option is incorrect.

c) Income from continuing operation is calculated in the second section after the calculation of gross profit. Thus, this option is incorrect.

d) Discontinued operation is calculated in the third section of the income statement after the continued operations. Thus, this option is incorrect.

Hence, the correct answer is option (a).

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Answer 2

Question

Chapter 13, Problem 1SSQ

To determine

Identify the section to be presented in the last of the income statement.

Expert Solution & Answer

Answer to Problem 1SSQ

Option (a): extraordinary items

Explanation of Solution

Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. An income statement consists of the following four items in respective order.

1. Gross profit
2. Income from continuing operation
3. Income from discontinued operation
4. Extraordinary items

Explanation for the given options:

a) Extraordinary items are the last section of the income statement. Thus, this option is correct.

b) Gross profit is calculated in the first step of the income statement. Thus, this option is incorrect.

c) Income from continuing operation is calculated in the second section after the calculation of gross profit. Thus, this option is incorrect.

d) Discontinued operation is calculated in the third section of the income statement after the continued operations. Thus, this option is incorrect.

Hence, the correct answer is option (a).

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Answer 3

Question

Chapter 13, Problem 1SSQ

To determine

Identify the section to be presented in the last of the income statement.

Expert Solution & Answer

Answer to Problem 1SSQ

Option (a): extraordinary items

Explanation of Solution

Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. An income statement consists of the following four items in respective order.

1. Gross profit
2. Income from continuing operation
3. Income from discontinued operation
4. Extraordinary items

Explanation for the given options:

a) Extraordinary items are the last section of the income statement. Thus, this option is correct.

b) Gross profit is calculated in the first step of the income statement. Thus, this option is incorrect.

c) Income from continuing operation is calculated in the second section after the calculation of gross profit. Thus, this option is incorrect.

d) Discontinued operation is calculated in the third section of the income statement after the continued operations. Thus, this option is incorrect.

Hence, the correct answer is option (a).

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Answer 4

Question

Chapter 13, Problem 1SSQ

To determine

Identify the section to be presented in the last of the income statement.

Expert Solution & Answer

Answer to Problem 1SSQ

Option (a): extraordinary items

Explanation of Solution

Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. An income statement consists of the following four items in respective order.

1. Gross profit
2. Income from continuing operation
3. Income from discontinued operation
4. Extraordinary items

Explanation for the given options:

a) Extraordinary items are the last section of the income statement. Thus, this option is correct.

b) Gross profit is calculated in the first step of the income statement. Thus, this option is incorrect.

c) Income from continuing operation is calculated in the second section after the calculation of gross profit. Thus, this option is incorrect.

d) Discontinued operation is calculated in the third section of the income statement after the continued operations. Thus, this option is incorrect.

Hence, the correct answer is option (a).

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Answer 5

Chapter 13, Problem 1SSQ

To determine

Identify the section to be presented in the last of the income statement.

Expert Solution & Answer

Answer to Problem 1SSQ

Option (a): extraordinary items

Explanation of Solution

Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. An income statement consists of the following four items in respective order.

1. Gross profit
2. Income from continuing operation
3. Income from discontinued operation
4. Extraordinary items

Explanation for the given options:

a) Extraordinary items are the last section of the income statement. Thus, this option is correct.

b) Gross profit is calculated in the first step of the income statement. Thus, this option is incorrect.

c) Income from continuing operation is calculated in the second section after the calculation of gross profit. Thus, this option is incorrect.

d) Discontinued operation is calculated in the third section of the income statement after the continued operations. Thus, this option is incorrect.

Hence, the correct answer is option (a).

Answer 6

Chapter 13, Problem 1SSQ

To determine

Identify the section to be presented in the last of the income statement.

Expert Solution & Answer

Answer to Problem 1SSQ

Option (a): extraordinary items

Explanation of Solution

Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. An income statement consists of the following four items in respective order.

1. Gross profit
2. Income from continuing operation
3. Income from discontinued operation
4. Extraordinary items

Explanation for the given options:

a) Extraordinary items are the last section of the income statement. Thus, this option is correct.

b) Gross profit is calculated in the first step of the income statement. Thus, this option is incorrect.

c) Income from continuing operation is calculated in the second section after the calculation of gross profit. Thus, this option is incorrect.

d) Discontinued operation is calculated in the third section of the income statement after the continued operations. Thus, this option is incorrect.

Hence, the correct answer is option (a).

Answer 7

Chapter 13, Problem 1SSQ

To determine

Identify the section to be presented in the last of the income statement.

Answer 8

Expert Solution & Answer

Answer to Problem 1SSQ

Option (a): extraordinary items

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement. An income statement consists of the following four items in respective order.

1. Gross profit
2. Income from continuing operation
3. Income from discontinued operation
4. Extraordinary items

Explanation for the given options:

a) Extraordinary items are the last section of the income statement. Thus, this option is correct.

b) Gross profit is calculated in the first step of the income statement. Thus, this option is incorrect.

c) Income from continuing operation is calculated in the second section after the calculation of gross profit. Thus, this option is incorrect.

d) Discontinued operation is calculated in the third section of the income statement after the continued operations. Thus, this option is incorrect.

Hence, the correct answer is option (a).