Exam 11: Evaluating Performance: Earnings Quality, the Income Statement, Statement of Comprehensive Income

The combined audit report on a company's financial statements and internal control over financial reporting typically contains five paragraphs.

Comprehensive income includes net income plus:

Publicly-traded companies are required to file their annual financial statements with the Securities and Exchange Commission.

Comprehensive income does not include foreign-currency translation gains/losses.

The formula to determine income tax expense is:

Changes in accounting principles include changes:

A sign(s)of increasing earnings quality is(are):

The newly adopted revenue recognition standard, issued by the FASB and IASB, has very little impact on the retail industry because the standards for revenue recognition in that industry were already closely aligned globally.

A corporation's net income receives more attention than any other financial statement item because an upward trend in net income usually:

The gain or loss on the disposal of a business segment is shown on the income statement as:

Which of the following statements regarding annual reports covering corporate social responsibility is INCORRECT?

The Brankov Tool and Die Company reports the following for the fiscal year ended December 31, 2018: What is comprehensive income for the year ended December 31, 2018?

Santa Barbara Company, a U.S. company, purchased merchandise on account from a company in England. The price was 1300 British pounds. At the time of the purchase, the exchange rate for a British pound was $1.54. At the time Santa Barbara Company paid for the merchandise, the exchange rate for a British pound was $1.58. What is the amount of the gain or loss recorded by the Santa Barbara Company upon payment?

Padowski Corporation's net income for the current year is $550,000. At year end, the corporation had outstanding 2500 shares of 18%, $100 par value nonconvertible preferred stock and 17,000 shares of $10 par value common stock. No shares were issued or retired during the year. What is basic earnings per share? (Round your final answer to the nearest cent.)

The estimated value of a company is $18 million. The company has 2 million shares outstanding at a market price of $10 per share. You already own 1,000 shares of the stock. Based on this information, the investment decision rule is:

The financial statements are the responsibility of:

Eastwich Corporation has pretax accounting income of $5,900,000 and taxable income of $5,820,000. The company's income tax rate is 20%. The journal entry to record the income tax includes a:

Gross profit percentage is calculated by dividing cost of goods sold by net sales.

Katherine's Fashions is going to discontinue one of its manufacturing divisions. The division's assets with a book value of $1,010,000 are sold for $80,000. The division generated an operating loss of $1,480,000 after the decision was made to discontinue the segment. Ignoring income taxes, what total amount should be reported on the income statement as discontinued operations?

A company is required to report both basic and diluted earnings per share when the: