Reference no: EM132940622

Problem 1: On a multiple-step income statement, gains or losses on sale of equipment would be shown

Group of answer choices

Option 1: before gross profit on sales.

Option 2: after income before extraordinary items but before net income.

Option 3: after gross profit on sales but before income from continuing operations.

Option 4: after income from continuing operations but before income from extraordinary items.

Problem 2: The normal ordering of items in the income statement would be best illustrated by which of the following?

Group of answer choices

Option 1: Income from continuing operations, discontinued operations, extraordinary items, cumulative effects, net income

Option 2: Discontinued operations, income from continuing operations, extraordinary items, cumulative effects, net income

Option 3: Income from continuing operations, extraordinary items, cumulative effects, discontinued operations, net income

Option 4: Extraordinary items, cumulative effects, income from continuing operations, discontinued operations, net income