Chapter 4, Problem 4.24E

Concepts; terminology

• LO4–1, LO4–2, LO4–3, LO4–4, LO4–5, LO4–6, LO4–7, LO4–8

Listed below are several terms and phrases associated with income statement presentation and the statement of cash flows. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it.

List A	List B
_____ 1. Intraperiod tax allocation	a. An other comprehensive income item
_____ 2. Comprehensive income	b. Starts with net income and works backwards to convert to cash
_____ 3. Unrealized holding gain on Investments	c. Reports the cash effects of each operating activity directly on the statement
_____ 4. Operating income	d. Correction of a material error of a prior period
_____ 5. A discontinued operation	e. Related to the external financing of the company
_____ 6. Earnings per share	f. Associates tax with income statement item
_____ 7. Prior period adjustment	g. Total nonowner change in equity
_____ 8. Financing activities	h. Related to the transactions entering into the determination of net income
_____ 9. Operating activities (SCF)	i. Related to the acquisition and disposition of long-term assets
_____ 10. Investing activities	j. Required disclosure for publicly traded corporation
_____ 11. Direct method	k. A component of an entity
_____ 12. Indirect method	l. Directly related to principal revenue-generating activities