Question #1: What is the purpose of arranging an income statement to show subtotals for income from continuing operations and income before extraordinary items?
Question #3: Define extraordinary items. How are extraordinary items distinguished from items that are presented as separate-line items in an income statement, but are not extraordinary.
Question # 5: A prior period adjustment relates to the income of past accounting periods. Explain how such an item is shown in the financial statements.
Question #7: Explain how each of the following is computed: a. Price-earnings ratio. b. Basic earnings per share. c. Diluted earnings per share.
Question #13: What is a liquidating dividend, and how does it relate to a regular (nonliquidating) dividend?