Question 1

Which of the following transactions is not reported as other comprehensive income by either U.S.GAAP or IFRS?

Accepted Answer

A) gains and losses from foreign currency translation 
B) adjustments to unrecognized pension costs (benefits) 
C) unrealized gains and losses from trading securities 
D) unrealized gains and losses from derivatives classified as cash flow hedges 
A) gains and losses from foreign currency translation 
B) adjustments to unrecognized pension costs (benefits) 
C) unrealized gains and losses from trading securities 
D) unrealized gains and losses from derivatives classified as cash flow hedges C

Question 2

Which of the following is not a subtotal on the multi-step income statement?

Accepted Answer

A) income from discontinued operations 
B) gross profit 
C) operating income 
D) income before tax 
A) income from discontinued operations 
B) gross profit 
C) operating income 
D) income before tax A

Question 3

The noncontrolling interest line item on the income statement represents the income attributable to the portion of a subsidiary owned by others.

Accepted Answer

A) True 
 B)False  True

Question 4

Companies use ________ income statements when a large number of line items distracts the user from identifying key measures and relationships.

Accepted Answer

A) comprehensive 
B) condensed 
C) single step 
D) multi-step 
A) comprehensive 
B) condensed 
C) single step 
D) multi-step

Question 5

Currently,under U.S.GAAP,what are the four items of other comprehensive income? Why should these items not flow through net income?

Accepted Answer

The key line items consist of:1.Unrealiz

Question 6

Which of the following income statement elements is an economic inflow that occurs from primary operations?

Accepted Answer

A) revenue 
B) comprehensive income 
C) gain 
D) net income 
A) revenue 
B) comprehensive income 
C) gain 
D) net income

Question 7

Other comprehensive income includes unrealized gains and losses from all investment securities.

Accepted Answer

A) True 
 B)False

Question 8

U.S.GAAP requires firms to classify revenues and expenses using the functional approach.

Accepted Answer

A) True 
 B)False

Question 9

On May 1,Jonson Industries decided to discontinue its prepackaged business segment.At the end of the year,the company is still holding the business segment for disposal,which is expected early in the following year.On its year-end income statement,Jonson Industries will report as income from discontinued operations the profits generated by the prepackaged business segment ________.

Accepted Answer

A) for the entire year,before taxes 
B) for the entire year,net of taxes 
C) since May 1,before taxes 
D) since May 1,net of taxes 
A) for the entire year,before taxes 
B) for the entire year,net of taxes 
C) since May 1,before taxes 
D) since May 1,net of taxes

Question 10

Key performance measures on the statement of net income include operating income and income from continuing operations,among others.

Accepted Answer

A) True 
 B)False

Question 11

Each of the following is a motivation to engage in earnings management except ________.

Accepted Answer

A) beat benchmarks 
B) avoid reporting a loss 
C) separate other comprehensive income from net income 
D) present a smooth,upwards trend in earnings 
A) beat benchmarks 
B) avoid reporting a loss 
C) separate other comprehensive income from net income 
D) present a smooth,upwards trend in earnings

Question 12

Earnings per share is presented for gross profit,continuing operations,discontinued operations,and net income.

Accepted Answer

A) True 
 B)False

Question 13

U.S.public companies are required to provide a statement of stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is the key performance measure reported on the income statement that is typically presented last in sequence?

Accepted Answer

A) earnings per share 
B) income from continuing operations 
C) net income 
D) operating income 
A) earnings per share 
B) income from continuing operations 
C) net income 
D) operating income

Question 15

Baggow Styles provided the following partial-trial balance for the current year.Beginning with the line item Income from Continuing Operations Before Taxes,prepare a statement of net income for the year ended December 31.Baggow is subject to a 40% income tax rate.
     Accumulated Depreciation on Assets from

Accepted Answer

@#IMG-DLM& 
 @#IMG-DLM& 
 Other Income,Gains,and L

Question 16

Which of the following is not a drawback of the single-step income statement?

Accepted Answer

A) It does not separate operating and non-operating items. 
B) It combines revenues and gains without classification. 
C) It does not classify expenses by function. 
D) It misrepresents net income due to oversimplification. 
A) It does not separate operating and non-operating items. 
B) It combines revenues and gains without classification. 
C) It does not classify expenses by function. 
D) It misrepresents net income due to oversimplification.

Question 17

How is reporting for other comprehensive income (OCI)different between U.S.GAAP and IFRS?

Accepted Answer

A) U)S.GAAP allow either a one-statement approach or a two-statement approach while IFRS require a two-statement approach using the direct method. 
B) U)S.GAAP allow either a one-statement approach or a two-statement approach while IFRS require a two-statement approach and allow more items to be classified as OCI. 
C) Both U.S.GAAP and IFRS allow either a one-statement approach or a two-statement approach while IFRS require the direct method. 
D) Both U.S.GAAP and IFRS allow either a one-statement approach or a two-statement approach while IFRS allow more items to be classified as OCI. 
A) U)S.GAAP allow either a one-statement approach or a two-statement approach while IFRS require a two-statement approach using the direct method. 
B) U)S.GAAP allow either a one-statement approach or a two-statement approach while IFRS require a two-statement approach and allow more items to be classified as OCI. 
C) Both U.S.GAAP and IFRS allow either a one-statement approach or a two-statement approach while IFRS require the direct method. 
D) Both U.S.GAAP and IFRS allow either a one-statement approach or a two-statement approach while IFRS allow more items to be classified as OCI.

Question 18

Most elements of operating income are permanent in nature.

Accepted Answer

A) True 
 B)False

Question 19

Companies report earnings per share for all of the following except ________.

Accepted Answer

A) operating income 
B) net income 
C) continuing operations 
D) discontinued operations 
A) operating income 
B) net income 
C) continuing operations 
D) discontinued operations

Question 20

What is the amount of gross profit for Tuche Millinery?

Accepted Answer

A) $981 
B) $673 
C) $632 
D) $587 
A) $981 
B) $673 
C) $632 
D) $587

Which of the following transactions is not reported as other comprehensive income by either U.S.GAAP or IFRS?

Which of the following is not a subtotal on the multi-step income statement?

The noncontrolling interest line item on the income statement represents the income attributable to the portion of a subsidiary owned by others.

Companies use ________ income statements when a large number of line items distracts the user from identifying key measures and relationships.

Currently,under U.S.GAAP,what are the four items of other comprehensive income? Why should these items not flow through net income?

Which of the following income statement elements is an economic inflow that occurs from primary operations?

Other comprehensive income includes unrealized gains and losses from all investment securities.

U.S.GAAP requires firms to classify revenues and expenses using the functional approach.

Key performance measures on the statement of net income include operating income and income from continuing operations,among others.

Each of the following is a motivation to engage in earnings management except ________.

Earnings per share is presented for gross profit,continuing operations,discontinued operations,and net income.

U.S.public companies are required to provide a statement of stockholders' equity.

Which of the following is the key performance measure reported on the income statement that is typically presented last in sequence?

Which of the following is not a drawback of the single-step income statement?

How is reporting for other comprehensive income (OCI)different between U.S.GAAP and IFRS?

Most elements of operating income are permanent in nature.

Companies report earnings per share for all of the following except ________.

What is the amount of gross profit for Tuche Millinery?

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

Filters

Exam 5: Statements of Net Income and Comprehensive Net Income

Which of the following transactions is not reported as other comprehensive income by either U.S.GAAP or IFRS?

Which of the following is not a subtotal on the multi-step income statement?

The noncontrolling interest line item on the income statement represents the income attributable to the portion of a subsidiary owned by others.

Companies use ________ income statements when a large number of line items distracts the user from identifying key measures and relationships.

Currently,under U.S.GAAP,what are the four items of other comprehensive income? Why should these items not flow through net income?

Which of the following income statement elements is an economic inflow that occurs from primary operations?

Other comprehensive income includes unrealized gains and losses from all investment securities.

U.S.GAAP requires firms to classify revenues and expenses using the functional approach.

Key performance measures on the statement of net income include operating income and income from continuing operations,among others.

Each of the following is a motivation to engage in earnings management except ________.

Earnings per share is presented for gross profit,continuing operations,discontinued operations,and net income.

U.S.public companies are required to provide a statement of stockholders' equity.

Which of the following is the key performance measure reported on the income statement that is typically presented last in sequence?

Which of the following is not a drawback of the single-step income statement?

How is reporting for other comprehensive income (OCI)different between U.S.GAAP and IFRS?

Most elements of operating income are permanent in nature.

Companies report earnings per share for all of the following except ________.

What is the amount of gross profit for Tuche Millinery?

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

Filters