Which of the following statements is not true concerning the analysis of operati

Question

Which of the following statements is not true concerning the analysis of operating activities? Select one:

a. extraordinary items include an event or transaction that has a high degree of abnormality and is unrelated to typical activities of a firm.

b. income statements for the current and the prior two years are restated after excluding the effects of discontinued operations.

c. accounting changes are often considered cosmetic and yield no cash flow consequences. This means the financial condition of a company is not affected by a change in accounting.

d. impairment of long-lived assets and restructuring changes constitute two major catagories of special items, and thus are reported as extraordinary items prior to continuing income.

Explanation / Answer

Which of the following statements is not true concerning the analysis of operating activities?

Answer is :

d. impairment of long-lived assets and restructuring changes constitute two major catagories of special items, and thus are reported as extraordinary items prior to continuing income.

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