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15. Which of the following items will not appear in the retained earnings statement? a. Net loss b. Prior period adjustment c. Discontinued operations 10.12

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15. Which of the following items will not appear in the retained earnings statement? a. Net loss b. Prior period adjustment c. Discontinued operations 10.12 d. Dividends STO.02d 16. Which of the following is not a generally practiced method of presenting the income statement? a. Including prior period adjustments in determining net income b. The single-step income statement c. The consolidated statement of income to o u r d. Including gains and losses from discontinued operations of a component of a business in determining net income 17. A change in accounting principle requires that the cumulative effect of the change for prior periods be shown as an adjustment to: a. beginning retained earnings of the earliest period presented. b. net income of the period in which the change occurred. c. comprehensive income for the earliest period presented. d. stockholders' equity of the period in which the change occurred. When a company discontinues an operation and disposes of the discontinued operation (component), the transaction should be included in the income statement as a gain or loss (net of tax) on disposal reported as a. a prior period adjustment. b. an extraordinary item. c. an amount after continuing operations. d. a bulk sale of plant assets included in income from continuing operations. 19. Which of the following accounts would not appear on a post-closing trial balance? Cash. b. Service Revenue. Prepaid Insurance, d. Accounts Payable. 20. Ir Jethro wanted to save a set amount each month in order to buy a new pick-up truck when the new models are next available, which time value concept would be used to determine the monthly payment? a. Present value of one. b. Future value of one. c. Present value of an annuity due. d. Future value of an ordinary annuity

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