E $4-24$

Concepts;

terminology

LO$4-1,$ LO$4-2,$

LO$4-3,$ LO$4-4,$

LO$4-5,$ LO$4-6,$

LO$4-7,$ LO$4-8$

Listed below are several terms and phrases associated with income statement presentation and the statement of

cash flows. Pair each item from List A $($by letter$)$ with the item from List B that is most appropriately associated

with it$.$

Intraperiod tax allocation

a$.$ An other comprehensive income item.

Comprehensive income

Unrealized gain on

debt securities

Operating income

A discontinued operation

Earnings per share

Prior period adjustment

Financing activities

Operating activities $($SCF$)$

Investing activities

Direct method

Indirect method

b$.$ Starts with net income and works backwards to convert to

cash.

c$.$ Reports the cash effects of each operating activity directly on

the statement.

d$.$ Correction of a material error of a prior period.

e$.$ Related to the external financing of the company.

f$.$ Associates tax with income statement item.

g$.$ Total nonowner change in equity.

h$.$ Related to the transactions entering into the determination of

net income.

i$.$ Related to the acquisition and disposition of long$-$term assets.

j$.$ Required disclosure for publicly traded corporation.

k$.$ A component of an entity.

I. Directly related to principal revenue$-$generating activities.