ACC 400 Course Great Wisdom / tutorialrank.com ACC 400 Course Great Wisdom / tutorialrank.com | Page 16

b.
the new principle should be used in reporting the
results of operations of the current year.

c.
the cumulative effect of the change in principle should
be reflected on the income statement as of the beginning of the next
year.

d.
the cumulative effect of the change in accounting
principle should be classified as an extraordinary item on the income
statement.

19.
Which of the following is not an irregular item on the
income statement?

a.

Discontinued operations

b.

Extraordinary items

c.

Other revenues and expenses

20.
Vertical analysis is a technique that expresses each
item in a financial statement