Following are denitions or descriptions of terms relating to corporate income statements or income measurement. (1) A

Question:

Following are deﬁnitions or descriptions of terms relating to corporate income statements or income measurement.
(1) A difference between an entity’s taxable income and pretax accounting income that arises from applying different accounting methods for taxation and ﬁnancial reporting purposes
(2) An account in which a records the difference between its income tax expense and income tax payable each year; typically a long-term liability account
(3) Generally, net income divided by the weighted-average number of shares of out-standing during a given year
(4) A material gain or loss that is both unusual in nature and infrequent in occurrence
(5) The amount that represents the earnings produced by a corporation’s principal profit oriented activities
(6) A correction of a material error occurring in a previous accounting period that involves a revenue or expense
(7) A section of a corporate income statement devoted to a business segment that is not part of the company at year-end
Required:
Match each deﬁnition or description with the appropriate term from the following list.
(a) Earnings per share
(b) Discontinued operation
(c) Extraordinary item
(d) Income from continuing operations
(e) Deferred income tax
(f) Temporary difference
(g) Prior period adjustment
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...