Question 1

Comprehensive income is equal to

Accepted Answer

A)  net income minus other comprehensive income. 
B)  net income plus other comprehensive income. 
C)  gross profit plus other comprehensive income. 
D)  gross profit minus other comprehensive income. 
A)  net income minus other comprehensive income. 
B)  net income plus other comprehensive income. 
C)  gross profit plus other comprehensive income. 
D)  gross profit minus other comprehensive income.

Question 2

The earnings per share figure expresses net income, after deducting common dividends, on a per-share basis.

Accepted Answer

A) True 
 B)False

Question 3

All of the following categories have established revenue recognition criteria except

Accepted Answer

A)  sales of goods. 
B)  collection of accounts receivable. 
C)  provision of services. 
D)  contracts. 
A)  sales of goods. 
B)  collection of accounts receivable. 
C)  provision of services. 
D)  contracts.

Question 4

Match the following terms to the descriptions.

Accepted Answer

The answer of Match the following terms to the descriptions....

Question 5

When following ASPE, all of the following criteria must be satisfied in order to recognize revenue for the provision of services, under the earnings based approach, except

Accepted Answer

A)  the service has been performed. 
B)  the amount of consideration to be received can be measured with reasonably assurance. 
C)  the seller has no continuing involvement. 
D)  collection is reasonably assured. 
A)  the service has been performed. 
B)  the amount of consideration to be received can be measured with reasonably assurance. 
C)  the seller has no continuing involvement. 
D)  collection is reasonably assured.

Question 6

Operating expenses included all of the following except

Accepted Answer

A)  advertising. 
B)  depreciation. 
C)  rent. 
D)  loss on sale of equipment. 
A)  advertising. 
B)  depreciation. 
C)  rent. 
D)  loss on sale of equipment.

Question 7

When following ASPE, all of the following criteria must be satisfied in order to recognize revenue for the sales of goods under the earnings based approach, except

Accepted Answer

A)  the service has been performed. 
B)  the risks and rewards have been transferred to the customer. 
C)  the seller has no continuing involvement. 
D)  collection is reasonably assured. 
A)  the service has been performed. 
B)  the risks and rewards have been transferred to the customer. 
C)  the seller has no continuing involvement. 
D)  collection is reasonably assured.

Question 8

When a company uses a multi-step income statement, all revenues are presented first regardless of the source.

Accepted Answer

A) True 
 B)False

Question 9

The multi-step income statement allows readers to easily identify gross profit and profits earned from operating activities.

Accepted Answer

A) True 
 B)False

Question 10

If a company generates gains,

Accepted Answer

A)  this represents income from ordinary activities 
B)  this is not considered income 
C)  this is separate and distinct from sales revenue 
D)  this is considered a financing activity 
A)  this represents income from ordinary activities 
B)  this is not considered income 
C)  this is separate and distinct from sales revenue 
D)  this is considered a financing activity

Question 11

Revenue and gains arise from a company's ordinary activities.

Accepted Answer

A) True 
 B)False

Question 12

The final step in preparing the multi-step income statement is

Accepted Answer

A)  sales revenue. 
B)  gross profit. 
C)  operating income. 
D)  net income. 
A)  sales revenue. 
B)  gross profit. 
C)  operating income. 
D)  net income.

Question 13

When there has been a change in the number of preferred shares during the period, a weighted average number of shares must be determined for the EPS calculation.

Accepted Answer

A) True 
 B)False

Question 14

Comprehensive income includes

Accepted Answer

A)  gains or losses from the sale of property, plant and equipment. 
B)  gains or losses from the sale of intangible assets. 
C)  gains or losses from revaluing certain financial statement items to fair value. 
D)  all of the above 
A)  gains or losses from the sale of property, plant and equipment. 
B)  gains or losses from the sale of intangible assets. 
C)  gains or losses from revaluing certain financial statement items to fair value. 
D)  all of the above

Question 15

Standard setters provide guidelines for recognizing revenue. There are separate standards for IFRS versus ASPE regarding how and when revenue can be recognized.
Instructions
a) Identify and explain the method used to recognize revenue under IFRS.
b) How does the method allowed for IFRS differ from what is allowed under ASPE?

Accepted Answer

a) Under IFRS, the contract-based approa

Question 16

Conquistitor Ltd. reported net income of $750,000 for the year ended July 31, 2020. During the year, the company also declared and paid dividends of $45,000 on the company's preferred shares. At the beginning of the year, Conquistitor had 350,000 common shares outstanding. No shares were issued or repurchased during the year.
Instructions
a) Calculate the basic earnings per-share ratio.
b) Assume 200,000 common shares were issued on Aug 1, 2019 and an additional 150,000 common shares issued on April 1, 2020. Calculate the basic earnings per-share ratio.

Accepted Answer

The answer of Conquistitor Ltd. reported net income of $750,000...

Question 17

What is comprehensive income? How is it reflected in the financial statements? How does it differ from operating income? Provide examples.

Accepted Answer

Comprehensive income is defined as the t

Question 18

Frenzo Furniture Co. is a manufacturer of specialty furniture, and uses the contract-based approach for revenue recognition. Because each piece of furniture is custom manufactured, the company requires a contract prior to beginning the production process. Contract terms include a payment of 40% of the estimated cost of the finished piece before production begins. Frenzo Furniture Co. should record the collection as a

Accepted Answer

A)  credit to sales revenue. 
B)  credit to unearned revenue. 
C)  credit to inventory. 
D)  credit to cost of goods sold. 
A)  credit to sales revenue. 
B)  credit to unearned revenue. 
C)  credit to inventory. 
D)  credit to cost of goods sold.

Question 19

When making sales on account, there are costs that may be incurred in the future; an example of a cost is bad debts.

Accepted Answer

A) True 
 B)False

Question 20

Examples of functional areas of the income statement are

Accepted Answer

A)  sales, gross profit, and net income. 
B)  cost of sales, administrative activities, and selling activities. 
C)  wages expenses, depreciation, and rent expense. 
D)  gross profit, operating income, and net income. 
A)  sales, gross profit, and net income. 
B)  cost of sales, administrative activities, and selling activities. 
C)  wages expenses, depreciation, and rent expense. 
D)  gross profit, operating income, and net income.

Comprehensive income is equal to

The earnings per share figure expresses net income, after deducting common dividends, on a per-share basis.

All of the following categories have established revenue recognition criteria except

Match the following terms to the descriptions.

When following ASPE, all of the following criteria must be satisfied in order to recognize revenue for the provision of services, under the earnings based approach, except

Operating expenses included all of the following except

When following ASPE, all of the following criteria must be satisfied in order to recognize revenue for the sales of goods under the earnings based approach, except

When a company uses a multi-step income statement, all revenues are presented first regardless of the source.

The multi-step income statement allows readers to easily identify gross profit and profits earned from operating activities.

If a company generates gains,

Revenue and gains arise from a company's ordinary activities.

The final step in preparing the multi-step income statement is

When there has been a change in the number of preferred shares during the period, a weighted average number of shares must be determined for the EPS calculation.

Comprehensive income includes

What is comprehensive income? How is it reflected in the financial statements? How does it differ from operating income? Provide examples.

When making sales on account, there are costs that may be incurred in the future; an example of a cost is bad debts.

Examples of functional areas of the income statement are

Overview of Corporate Financial Reporting

Analyzing Transaction and Their Effect on Financial Statement

Double-Entry Accounting and the Accounting Cycle

The Statement of Cash Flows

Cash and Accounts

Inventory

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

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Exam 4: Revenue Recognition and the Statement of Income

Comprehensive income is equal to

The earnings per share figure expresses net income, after deducting common dividends, on a per-share basis.

All of the following categories have established revenue recognition criteria except

Match the following terms to the descriptions.

When following ASPE, all of the following criteria must be satisfied in order to recognize revenue for the provision of services, under the earnings based approach, except

Operating expenses included all of the following except

When following ASPE, all of the following criteria must be satisfied in order to recognize revenue for the sales of goods under the earnings based approach, except

When a company uses a multi-step income statement, all revenues are presented first regardless of the source.

The multi-step income statement allows readers to easily identify gross profit and profits earned from operating activities.

If a company generates gains,

Revenue and gains arise from a company's ordinary activities.

The final step in preparing the multi-step income statement is

When there has been a change in the number of preferred shares during the period, a weighted average number of shares must be determined for the EPS calculation.

Comprehensive income includes

What is comprehensive income? How is it reflected in the financial statements? How does it differ from operating income? Provide examples.

When making sales on account, there are costs that may be incurred in the future; an example of a cost is bad debts.

Examples of functional areas of the income statement are

Overview of Corporate Financial Reporting

Analyzing Transaction and Their Effect on Financial Statement

Double-Entry Accounting and the Accounting Cycle

The Statement of Cash Flows

Cash and Accounts

Inventory

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

Filters