Financial Statements

Question 1

A material event that is unusual in nature or infrequent in occurrence should be reported separately on the income statement as a component of income, net of taxes or before results of discontinued operations?

Answer 1

Net of income taxes: NO

Before results of discontinued operations: YES

Question 2

T or F. A material event or transaction that is unusual in nature or infrequent in occurrence must be reported as a separate component of income from continuing operations.

Answer 2

True