Which of the following items should not be presented net of income tax on a Statement of Financial Performance?

• A.

  An unrealized gain on the revaluation of FV-OCI investments

• B.

  A loss from the operation of discontinued operations

• C.

  A gain on the sale of a FV-NI investment.

• D.

  All of the above should be reported net of income taxes.

The highest and best use concept values the asset based on the highest value that the market would place on the asset, considering all possible uses that are

• A.

  legally permissible.

• B.

  economically intolerable.

• C.

  financially feasible.

• D.

  physically possible.

An undetected omission of inventory items in the year-end physical count, if not corrected, will have all of the following effects, except for

• A.

  an overstatement of gross profit the year subsequent to the error

• B.

  an overstatement of cost of goods sold in the year of the error.

• C.

  an overstatement of ending inventory in the year subsequent to the error.

• D.

  an understatement of net income in the year of the error