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

A company has a foreign-currency transaction loss of $1400 and a foreign-currency transaction gain of $9800. How is this information reported on the income statement?

(Multiple Choice)

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Question 61

If net sales are $1,200,000; cost of goods sold is $400,000; and operating expenses are $100,000, gross profit is $700,000.

(True/False)

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Question 62

A U.S.-based company sells merchandise on account to a company in Mexico. The Mexican company wants to pay for the merchandise in pesos. If the peso decreases in value relative to the dollar, the seller will record a . The peso relative to the dollar.

(Multiple Choice)

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Question 63

Wendell Corporation reported net income for the current year of $800,000. Wendell had 6000 shares of $90 par value, 12% preferred stock outstanding and 42,000 shares of $1 par value common stock outstanding for the entire year. Earnings per share is: (Round your final answer to the nearest cent.)

(Multiple Choice)

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Question 64

The independent auditors conduct the audit, in accordance with the standards of the Public Company Accounting Oversight Board (United States), for:

(Multiple Choice)

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Question 65

The revenue recognition principle requires that sales revenue be recognized when it is earned.

(True/False)

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Question 66

Steadily decreasing cost of goods sold as a percentage of net sales is a sign of:

(Multiple Choice)

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Question 67

When a company discontinues a segment of its business, the income statement should report income (loss)from continuing operations and income (loss)from discontinued operations.

(True/False)

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Question 68

Examples of fraud involving improper revenue recognition include:

(Multiple Choice)

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Question 69

Taxable income should always equal pretax accounting income.

(True/False)

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Question 70

The Playscape Company reports the following for the fiscal year ending December 31, 2017: What is comprehensive income for the fiscal year ending December 31, 2017?

(Multiple Choice)

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Question 71

It is NOT the independent auditor's responsibility to determine whether the audited company's financial statements comply with GAAP.

(True/False)

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Question 72

Publicly-traded companies have the option to have their financial statements audited.

(True/False)

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Question 73

Maintaining control of costs is usually accomplished through each of the following EXCEPT:

(Multiple Choice)

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Question 74

An audit report is addressed to the board of directors and stockholders of the audited company.

(True/False)

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Question 75

Hedging enables an entity to protect itself from losing money in a foreign transaction by engaging in a counterbalancing transaction.

(True/False)

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Question 76

Common stock should be purchased if the estimated value of a company exceeds its current market value.

(True/False)

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Question 77

The qualified opinion is the highest statement of assurance that an independent certified public accountant can express.

(True/False)

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Question 78

Ongoing expenses incurred by the entity, other than the direct expenses for merchandise, are called:

(Multiple Choice)

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Question 79

Management issues a report on internal control over financial reporting along with the company's financial statements.

(True/False)

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Question 80

Showing 61 - 80 of 119

A company has a foreign-currency transaction loss of $1400 and a foreign-currency transaction gain of $9800. How is this information reported on the income statement?

If net sales are $1,200,000; cost of goods sold is $400,000; and operating expenses are $100,000, gross profit is $700,000.

A U.S.-based company sells merchandise on account to a company in Mexico. The Mexican company wants to pay for the merchandise in pesos. If the peso decreases in value relative to the dollar, the seller will record a . The peso relative to the dollar.

Wendell Corporation reported net income for the current year of $800,000. Wendell had 6000 shares of $90 par value, 12% preferred stock outstanding and 42,000 shares of $1 par value common stock outstanding for the entire year. Earnings per share is: (Round your final answer to the nearest cent.)

The independent auditors conduct the audit, in accordance with the standards of the Public Company Accounting Oversight Board (United States), for:

The revenue recognition principle requires that sales revenue be recognized when it is earned.

Steadily decreasing cost of goods sold as a percentage of net sales is a sign of:

When a company discontinues a segment of its business, the income statement should report income (loss)from continuing operations and income (loss)from discontinued operations.

Examples of fraud involving improper revenue recognition include:

Taxable income should always equal pretax accounting income.

The Playscape Company reports the following for the fiscal year ending December 31, 2017: What is comprehensive income for the fiscal year ending December 31, 2017?

It is NOT the independent auditor's responsibility to determine whether the audited company's financial statements comply with GAAP.

Publicly-traded companies have the option to have their financial statements audited.

Maintaining control of costs is usually accomplished through each of the following EXCEPT:

An audit report is addressed to the board of directors and stockholders of the audited company.

Hedging enables an entity to protect itself from losing money in a foreign transaction by engaging in a counterbalancing transaction.

Common stock should be purchased if the estimated value of a company exceeds its current market value.

The qualified opinion is the highest statement of assurance that an independent certified public accountant can express.

Ongoing expenses incurred by the entity, other than the direct expenses for merchandise, are called:

Management issues a report on internal control over financial reporting along with the company's financial statements.

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

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

A company has a foreign-currency transaction loss of $1400 and a foreign-currency transaction gain of $9800. How is this information reported on the income statement?

If net sales are $1,200,000; cost of goods sold is $400,000; and operating expenses are $100,000, gross profit is $700,000.

A U.S.-based company sells merchandise on account to a company in Mexico. The Mexican company wants to pay for the merchandise in pesos. If the peso decreases in value relative to the dollar, the seller will record a ________. The peso ________ relative to the dollar.

Wendell Corporation reported net income for the current year of $800,000. Wendell had 6000 shares of $90 par value, 12% preferred stock outstanding and 42,000 shares of $1 par value common stock outstanding for the entire year. Earnings per share is: (Round your final answer to the nearest cent.)

The independent auditors conduct the audit, in accordance with the standards of the Public Company Accounting Oversight Board (United States), for:

The revenue recognition principle requires that sales revenue be recognized when it is earned.

Steadily decreasing cost of goods sold as a percentage of net sales is a sign of:

When a company discontinues a segment of its business, the income statement should report income (loss)from continuing operations and income (loss)from discontinued operations.

Examples of fraud involving improper revenue recognition include:

Taxable income should always equal pretax accounting income.

The Playscape Company reports the following for the fiscal year ending December 31, 2017: What is comprehensive income for the fiscal year ending December 31, 2017?

It is NOT the independent auditor's responsibility to determine whether the audited company's financial statements comply with GAAP.

Publicly-traded companies have the option to have their financial statements audited.

Maintaining control of costs is usually accomplished through each of the following EXCEPT:

An audit report is addressed to the board of directors and stockholders of the audited company.

Hedging enables an entity to protect itself from losing money in a foreign transaction by engaging in a counterbalancing transaction.

Common stock should be purchased if the estimated value of a company exceeds its current market value.

The qualified opinion is the highest statement of assurance that an independent certified public accountant can express.

Ongoing expenses incurred by the entity, other than the direct expenses for merchandise, are called:

Management issues a report on internal control over financial reporting along with the company's financial statements.

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Internal Control Cash

Short-Term Investments Receivables

Inventory Cost of Goods Sold

Plant Assets, Natural Resources, Intangibles

Long-Term Investments the Time Value of Money

Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

A U.S.-based company sells merchandise on account to a company in Mexico. The Mexican company wants to pay for the merchandise in pesos. If the peso decreases in value relative to the dollar, the seller will record a . The peso relative to the dollar.