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 corporation 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 common stock 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
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

  • CreatedMarch 27, 2015
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