Which of the following types of items would you be most likely to see below the income tax expense line on an income statement prepared in 2014?
A)Gain on Sale of Discontinued Operations,Net of Tax
B)Gross Profit
C)Cumulative Effect of Accounting Change
D)Salaries Expense

Question

Quizplus · Accepted Answer

Gain on Sale of Discontinued Operations, Net of Tax is a one-time event that is not recurring and would most likely be reported below the income tax expense line. Gross Profit and Salaries Expense are both reported above the income tax expense line, while Cumulative Effect of Accounting Change would be reported in the income tax expense line or above depending on the nature of the accounting change.

Which of the Following Types of Items Would You Be