Exam 5: Statements of Net Income and Comprehensive Net Income

Gerogi Company had the following balances for income from continuing operations and pretax gains and losses on December 31: Income from continuing operations \ 540,000 Unrealized loss on trading security (92,000) Unrealized gain on available-for-sale debt security 30,000 Unrealized loss on pension adjustment (110,000) Gain on disposal of discontinued operations 240,000 The company's effective tax rate is 40%. What amount should Gerogi Company report as comprehensive income for the year ended December 31?

The following data include all the elements from Tuche Millinery's income statement: Administrative Expense \ 226 Cost of Goods Sold 251 Gain on Sale of Securities 47 Income Tax Expense 56 Loss on Discontinued Operations 38 Loss on Disposal of Equipment 86 Revenue 865 Selling Expense 124 What is the amount of income from continuing operations for Tuche Millinery?

Common-size financial statements ________.

The following data include all the elements from Tuche Millinery's income statement: Administrative Expense \ 229 Cost of Goods Sold 259 Gain on Sale of Securities 46 Income Tax Expense 53 Loss on Discontinued Operations 38 Loss on Disposal of Equipment 86 Revenue 866 Selling Expense 124 What is the amount of operating income for Tuche Millinery?

What items are included in a company's income from continuing operations and how are these items categorized if the company uses (a) a multi-step format or (b) a single-step format?

Which of the following is an earnings management technique that involves increasing a current loss to show a future increase in net income?

The "nature approach" to classifying expenses refers to classification by source such as salary costs or rent expense.

Paxdot Labs provided the following partial trial balance for the current year. Beginning with the line item Operating Income, prepare a statement of net income for the year ended December 31. Paxdot is subject to a 40% income tax rate. Paxdot Labs Partial Trial Balance (Selected Accounts) For the Year Ended December 31 Accounts Debit Credit Operating Income \ 233,000 Dividend Income 24,680 Gain on Sale of Discontinued Operations 37,010 Unrealized Gain on Trading Investments 37,260 Gain on Foreign Currency Translation 23,030 Loss on Asset Impairment 15,420 Loss from Discontinued Operations 18,340

Which of the following would be included in net income?

Which of the following income statement elements is an economic outflow that occurs from primary operations?

Which of the following is typically included in the income tax provision?

Which of the following income statement items is considered to be permanent?

Which of the following is not usually a motivating factor for management to manage earnings?

What is a limitation of the income statement?

Bandana Company had the following balances for net income and pretax gains and losses on December 31: Net income \ 39,000 Loss on discontinued operations (11,000) Unrealized gain on trading security 20,000 Foreign currency translation gain 15,000 The company's effective tax rate is 40%. What amount should Bandana Company report as comprehensive income for the year ended December 31?

A noncontrolling interest represents the portion of the reporting entity that is owned by others (noncontrolling owners).

When a significant operation that does meet the definition of a discontinued operation is disposed of, U.S. GAAP requires disclosure of the pre-tax profit (loss) of that operation.

Which of the following transactions will most likely result in a loss reported on the income statement?

Which of the following is the key performance measure reported on the income statement that is typically presented first in sequence?

Approximately 15% of reporting entities use a single-step income statement.