Exam 4: Income Statement and Related Information
Exam 1: Financial Accounting and Accounting Standards56 Questions
Exam 2: Conceptual Framework Underlying Financial Accounting92 Questions
Exam 3: The Accounting Information System56 Questions
Exam 4: Income Statement and Related Information85 Questions
Exam 5: Balance Sheet and Statement of Cash Flows87 Questions
Exam 6: Accounting and the Time Value of Money90 Questions
Exam 7: Cash and Receivables79 Questions
Exam 8: Valuation of Inventories: a Cost-Basis Approach98 Questions
Exam 9: Inventories: Additional Valuation Issues98 Questions
Exam 10: Acquisition and Disposition of Property, Plant, and Equipment108 Questions
Exam 11: Depreciation, Impairments, and Depletion99 Questions
Exam 12: Intangible Assets84 Questions
Exam 13: Current Liabilities and Contingencies103 Questions
Select questions type
Intraperiod tax allocation relates the income tax expense of the period to the specific items that give rise to the amount of the tax provision.
(True/False)
4.8/5
(38)
The primary advantage of the multiple-step format lies in the simplicity of presentation and the absence of any implication that one type of revenue or expense item has priority over another.
(True/False)
4.7/5
(41)
Discontinued operations, extraordinary items, and unusual gains and losses are all reported net of tax in the income statement.
(True/False)
4.9/5
(24)
Gross profit and income from operations are reported on a multiple-step but not a single-step income statement.
(True/False)
4.7/5
(35)
Both revenues and gains increase both net income and owners' equity.
(True/False)
4.8/5
(36)
Which of the following is never classified as an extraordinary item?
(Multiple Choice)
4.7/5
(37)
A correction of an error in prior periods' income will be reported In the income statement Net of tax a. Yes Yes b. No No c. Yes No d. No Yes
(Short Answer)
4.8/5
(42)
The approach most companies use to provide information related to the components of other comprehensive income is a
(Multiple Choice)
4.8/5
(41)
An income statement shows "income before income taxes and extraordinary items" in the amount of $2,055,000.The income taxes payable for the year are $1,080,000, including $360,000 that is applicable to an extraordinary gain.Thus, the "income before extraordinary items" is
(Multiple Choice)
4.9/5
(31)
Sam Hurd Company has the following items: write-down of inventories, $120,000; loss on disposal of Sports Division, $185,000; and loss due to strike, $113,000.Ignoring income taxes, what total amount should Sam Hurd Company report as extraordinary losses?
(Multiple Choice)
4.8/5
(36)
The occurrence that most likely would have no effect on 2007 net income is the
(Multiple Choice)
4.8/5
(32)
Use of a multiple-step income statement will result in the company reporting a higher net income than if they used a single-step income statement.
(True/False)
4.7/5
(41)
Penn Company reported the following information for 2007: Sales revenue \ 510,000 Cost of goods sold 350,000 Operating expenses 55,000 Unrealized holding gain on available-for-sale securities 40,000 Cash dividends received on the securities 2,000 For 2007, Penn would report other comprehensive income of
(Multiple Choice)
4.8/5
(29)
How should an unusual event not meeting the criteria for an extraordinary item be disclosed in the financial statements?
(Multiple Choice)
5.0/5
(26)
A strength of the income statement as compared to the balance sheet is that items that cannot be measured reliably can be reported in the income statement.
(True/False)
4.9/5
(38)
The components of other comprehensive income can be reported in a statement of stockholders' equity.
(True/False)
4.8/5
(33)
Shank Corporation made a very large arithmetical error in the preparation of its year-end financial statements by improper placement of a decimal point in the calculation of depreciation.The error caused the net income to be reported at almost double the proper amount.Correction of the error when discovered in the next year should be treated as
(Multiple Choice)
4.8/5
(40)
Snead, Inc.incurred the following infrequent losses during 2007: A $70,000 write-down of equipment leased to others.
A $40,000 adjustment of accruals on long-term contracts.
A $60,000 write-off of obsolete inventory.
In its 2007 income statement, what amount should Snead report as total infrequent losses that are not considered extraordinary?
(Multiple Choice)
4.8/5
(38)
Showing 61 - 80 of 85
Filters
- Essay(0)
- Multiple Choice(0)
- Short Answer(0)
- True False(0)
- Matching(0)