MULTIPLE C 00?Cboo" the one alternative that beat complet" the statement ormwer, the quedan. of a discontinued operation to be classified on the income nature. 1) In order for a loss on the disposal statement as a discontinued operation, it must be unusual in A) True B) False 2) In determining earnings per share when a preferred stock has dividends in arrears, only the current year's dividend is deducted to arive at earnings per share A) True B) False of developing the subtotal "Income from Continuing Operations" in an income 3) The purpose statement is to: A) Provide investors with the information necessary to compute earnings per share. B) Increase the amount of reported net income C) Assist investors in forecasting future operating results D) Decrease the amount of income subject to income taxes 4) Colfax Corporation's financial statements for the current year include the following: Income from continuing operations (net of taxes) Prior period adjustment (decrease in prior year net 125.800 $696.400 income. net of taxes) C'ash dividends paid to preferred stockholders Gain from discontinued operations (net of taxes) Extraordinary loss (net of tax benefit) $133.320 $743.200 $188.400 On the basis of this information, net income for the current year is: C) $570,600. A) $696,400. B) $1,439,600. D) S1,251,200 5) In computing earnings per share, the number of shares used is: A) The average of the beginning and the year-end number of shares outstanding. B) The year-end number of shares outstanding. C) The beginning of the year number of shares outstanding. D) The weighted average of shares outstanding for the year 6) To receive the next cash dividend, an investor must purchase the stock before the: A) Dividend declaration date. B) Ex-dividend date. C) Payment date announced by the board of directors. D) Date of record A-1