Each set of EPS numbers includes separately reported numbers for income from continuing

operations and the items that appear below it on the income statement.

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$3)$ The change in equity of an entity during a period from transactions and other events from

non$-$owner sources is known as comprehensive income.

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$4)$ The basic accounting equation may be expressed as assets $=$ liabilities $$ owners$$ equity.

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$5)$ U$.$S$.$ GAAP permits companies to report components of other comprehensive income $($OCI$)$

as part of the statement of changes in stockholders$$ equity.

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$6)$ The statement of cash flows shows the user why a firm$$s investments and financial structure

have changed between two balance sheets dates.

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$7)$ The cash flow statement explains why a firm$$s cash position has changed between successive

balance sheet dates while simultaneously explaining the changes that have taken place in the

firm$$s noncash asset, liability, and stockholders$$ equity accounts over the same period.

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