Question

. Distinguishing Concept Terminology Terms relating to concepts discussed in this chapter along with descriptions of those terms follow. Required Match each term, 1 through 12 with the most appropriate description a through I. 1 Operating income a. Event not related to the typical activities of a company 2 Nonoperating income b. Relating income available to common shareholders to one share of stock 3 Gross profit c. Allocating the tax effect to an item within a period of time 4 Unusual event d. Result from a change in accounting principle or an error correction 5 Infrequent event e. Revenues and expenses from a company's central operations 6 Discontinued operations f. Result specified when adopting an accounting standard update 7 Intraperiod tax allocation g. Nonowner changes in equity 8 Earnings per share h. An eliminated business component representing a strategic shift . 9 Comprehensive income i. Results from a change in accounting estimate 10 Prospective treatment j. Event not expected to recur in the foreseeable future 11 Retrospective treatment k. Sales revenue less cost of goods sold 12 Modified retrospective treatment 1. Revenues, expenses, gains, and losses from a company's peripheral operations - A A

Answer 1

1. Operating income: e. Revenues and expenses from a company's central operations.

2. Non operating income: l. Revenues, expenses, gains and losses from a company's peripheral operations.

3. Gross Profit: K. Sales revenue less cost of goods sold

4. Unusual event: a. Event not related to the typlical activities of a company.

5. Infrequent event: j. Event not expected to recur in the forseeable future.

6. Discontinued operations: h. An eliminated business component representing a strategic shift

7. Intraperiod tax allocation: c. Allocating the tax effect to an item within a period of time.

8. Earnings per share: b. Relating income available to common shareholders to one share of stock

9. Comprehensive income: g. Non owner changes in equity

10. Prospective treatment: i. Results from change in accounting estimate

11. Retrsopective treatment: d. Result from a change in accounting principle or an error correction.

12. Modified retrospective treatment: f. Result specified when adopting an accounting standard update.