Financial Statements

Question 1

An unusual AND infrequent nonrecurring event which has material effects–placed after discontinued operations on the income statement, net of tax effects

Answer 1

Extraordinary items

Question 2

An income statement item that results from teh disposal of a business component and is placed as a separte category after income from continuoung operations

Answer 2

Discontinued operations

Question 3

A program that is planned and controlled by management and materially changes eihter hte scope of the business undertaken by the company, or hte manner in which the business is conducted

Answer 3

Restructuring charges–treated before extraordinary items–not extraordinary

Question 4

The sum of net earnings (loss) and other comprehensive income–requires disclosure of changes to equity during a period due to non-owner transactions including:

1) unrealized gains/losses on AFS investements and foreign currency items
2) any reclassification adjustments
3) any adjustements necessary to recognize the funding status of pension plans or other postemployment benefits

Answer 4

Comprehensive income

Question 5

A component in the SE securion o the balance sheet–all components of OCI are closed into this balance sheet account, NOT Retained Earnings

Answer 5

Accumulated OCI

Question 6

The average time between acquisition of materials and final cash realization

Answer 6

Operating cycle

Question 7

Events occurring after the balance sheet date but before the financial statements and report are issued or available to be issued

Answer 7

Subsequent events