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

Nelly Company sold its cattle ranching component on June 30, 2016, for a gain of $1,000,000. From January through June, the component had sustained operating income of $300,000. The income tax rate is 35%. How should Nelly report the income and the sale on its income statement?

IFRS reporting requires all of the following items except

What are the four items of other comprehensive income under U.S. GAAP?

Georgio Company began 2015 with net assets of $80,000. Net income calculated by using the capital maintenance concept was $21,000. During 2015, owners contributed $26,000 of new capital. By year-end, the net assets totaled $78,000. Dividends to the owners during 2015 were

Which of the following is a required disclosure in the income statement when reporting the sale of a component of the business?

The income statement helps users

Exhibit 5-2 The following is an income statement from the financial records of Peace, Love and Joy Company for the year ended December 31, 2015: -Refer to Exhibit 5-2. Compute operating margin for Peace, Love, and Joy Company.

Using the information below in the computation of cost of goods sold, what would be the appropriate amount of Purchases? Purchase returns $ 1,200 Inventory, December 31 2,500 Cost of goods sold 10,500 Purchases ? Inventory, January 1 2,500 Freight-in 1,500

The following information relates to Peter Company in thousands):

Which of the following is not true about interim financial statements?

The statement of cash flows is least likely to help external users assess

When is a company not required to report comprehensive income?

The income statement reports

The income statement information for 2014 and 2015 of Kloe Company is as follows: Fill in the blanks for the missing data. All the necessary information is listed.

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

In a statement of cash flows, which of the following events would be classified as a financing activity?