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Should this appear in the other comprehensive income section of the income statement? Unrealized gains and losses on available-for-sale securities

• True
• False

Answer explanation

This is true. Unrealized gains and losses on available-for-sale securities are included in OCI until realized.

Should this appear in the other comprehensive income section of the income statement? Impairment loss on an intangible asset

• True
• False

Answer explanation

This is false. Impairment losses are part of net income, not other comprehensive income.

Should this appear in the other comprehensive income section of the income statement? Dividend revenue

• True
• False

Answer explanation

This is false. Dividend revenue is part of regular net income, not OCI.

Should this appear in the other comprehensive income section of the income statement? Unrealized foreign currency translation adjustments

• True
• False

Answer explanation

This is true. Foreign currency translation adjustments are included in OCI under U.S. GAAP.

Should this appear in the other comprehensive income section of the income statement? Operating loss related to a discontinued operation

• True
• False

Answer explanation

This is false. Discontinued operations are presented in a separate section of net income, not in other comprehensive income.

A company should report revenues and expenses related to a discontinued operation below the "income from continuing operations" line on a multiple-step income statement.

• True
• False

Answer explanation

This is true. Discontinued operations are shown below income from continuing operations to separate them from ongoing business activities.

Assume the company does not have a discontinued operations section. On the multiple-step income statement for a typical retailer-type company, should this be reported in the section often labeled "Other Items" or "Other Revenues and Expenses"? Interest Revenue

• True
• False

Answer explanation

Interest revenue is a non-operating item for a typical retailer and is included in the "Other Items" section.

Assume the company does not have a discontinued operations section. On the multiple-step income statement for a typical retailer-type company, should this be reported in the section often labeled "Other Items" or "Other Revenues and Expenses"? Interest Expense

• True
• False

Answer explanation

Interest expense is not part of normal retail operations and is included in "Other Revenues and Expenses."

Assume the company does not have a discontinued operations section. On the multiple-step income statement for a typical retailer-type company, should this be reported in the section often labeled "Other Items" or "Other Revenues and Expenses"? Dividend Revenue

• True
• False

Answer explanation

Dividend revenue is investment income and not tied to core retail activity, so it's reported in "Other Revenues and Expenses."

Assume the company does not have a discontinued operations section. On the multiple-step income statement for a typical retailer-type company, should this be reported in the section often labeled "Other Items" or "Other Revenues and Expenses"? Gains on the sale of a long-term asset

• True
• False

Answer explanation

Gains on asset sales are non-operating items and go in the "Other Items" section.