Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 32

Following are a number of the key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–10). Note that not all key terms and concepts will be used.

a. Percentage of completion method	k. Dilution
b. Physical inventory	l. Basic earnings per share
c. Expenses	m. Diluted earnings per share
d. Cost of goods sold	n. Extraordinary item
e. Matching principle	o. Discontinued operations
f. Inventory cost-flow assumption	p. Net income attributable to noncontrolling
g. Inventory shrinkage	interest
h. Perpetual system	q. Single-step format
i. Periodic system	r. Multiple-step format
j. Cost of goods sold model	s. Statement of cash flows

_____A gain or loss from a transaction that both is unusual in nature and occurs infrequently, and is reported separately on the income statement.

Step 1 of 2

Unusual item:

Stockholders and institutional investors utilize the income statement to forecast possible results of upcoming operations from the outcomes of present operations. Nonrecurring transactions that influence the anticipated process are stressed and reported separately from the outcome of repeated transactions. These are known as unusual transactions.

Generally, there are two unusual transactions which are as mentioned below:

1. Transaction of discounted operations.

2. Transaction having remarkable items.