Exam 5: The Income Statement and the Statement of Cash Flows Time Value of Money Module

Accounting information might be separately reported in any of the following components of the income statement or statement of retained earnings and their supporting schedules and footnotes: a. income from continuing operations or supporting schedules b. disclosure c. statement of retained earnings d. results from discontinued operations Several items of accounting information are listed below. ____ 1. Loss on sale by a highly diversified company of one of its four manufacturing plants ____ 2. Dividends to shareholders declared by the corporation during the year ____ 3. Operating loss of the current period of a component sold late in the year ____ 4. Total amount of cash paid to employees during the year ____ 5. Total selling expenses incurred by a producer of farm equipment during the year Required: Identify where the items of accounting information shown above would be most appropriately reported by placing the letters a-e) in the space provided. If the information would not appear in any of the above components, place an X) in the space. Items may be reported in more than one location.

In a statement of cash flows, the payment of a cash dividend on preferred stock outstanding should be classified as cash outflows for

What is the difference between interperiod tax allocation and intraperiod tax allocation?

What are the three expense recognition principles used to properly recognize expense either by matching revenues or matching periods?

Which of the following events would be classified as an operating activity in a statement of cash flows?

On May 1, 2016, Wheaton Company decided to dispose of its foreign sales operations a change which represents a strategic shift in the geographic area of Wheaton's operations). The component was sold on November 24, 2016, for $1,000,000 resulting in a $96,000 loss on the sale. The foreign sales operations recorded a $300,000 operating profit in 2016 up to the date of sale. Wheaton Company is subject to a 30% income tax rate. Required: Prepare the results from discontinued operations section of Wheaton Company's income statement for 2016.

Which of the following is not a purpose of the income statement?

A segment must pass all of the tests in order for it to be considered a reportable segment. These tests include the revenue, profit, and asset tests.

Systematic and rational allocation is used to recognize revenue.

Comprehensive income consists of

The information for Roberts Company is presented below:

Which of the following is helpful to report separately?

Which is least likely to be classified as a sale of a component?

Taylor Corporation sold Division M a business component). It was determined that the pretax loss from the operations of Division M during the year totaled $50,000 and that a pretax gain of $125,000 was realized on the sale of the division. The tax rate is 35%. Required: In good form, prepare the appropriate section of the income statement.

What are seven major components of a company's income statement?

Which of the following is an acceptable way of reporting a company's comprehensive income?

Under U.S. GAAP or IFRS, a company can either report its comprehensive income or loss under present net income and comprehensive income in a single continuous performance statement or report it in a separate but consecutive financial statement.

Comprehensive income includes the following changes in equity in a company during a period except

Morgan Company reported the following information for the year ended December 31, 2015: Net income $ 600,000 Preferred dividends declared and paid 60,000 Common dividends declared and paid 90,000 Average common shares outstanding 90,000 Ending market price per share 45 Net sales 5,100,000 What was Morgan's earnings per share for 2015?