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