Exam 5: Statements of Net Income and Comprehensive Net Income

Key performance measures on the statement of net income include gross profit and net assets,among others.

IFRS requires companies to present specific items on the income statement including write-downs of inventories and litigation settlements.

Bandana Company had the following balances for net income and pretax gains and losses on December 31: The company's effective tax rate is 40%.What amount should Bandana Company report as comprehensive income for the year ended December 31?

Why do companies issue condensed income statements?

The four income statement elements are gains,losses,revenues,and expenses.

Which of the following is typically included in the determination of income from continuing operations?

Which of the following income statement items is considered to be transitory?

The "cookie jar reserves" earnings management technique involves increasing earnings so as to increase managers' compensation.

Which of the following is not an account type reported in the statement of stockholders' equity?

Which of the following is not a characteristic that must be considered when determining that a business activity is a component of an entity for purposes of classifying that activity as a discontinued operation?

What is the amount of gross profit for Cambridge Company?

Other comprehensive income includes gains and losses from all foreign currency translations.

If a company writes down the net assets of a discontinued operation from original carrying value to a remeasurement of fair value in one year,then in the next year the fair value changes ________.

IFRS and U.S.GAAP include the same four items in Other Comprehensive Income.

What is the amount of income from continuing operations for Tuche Millinery?

Comprehensive income may be reported in the financial statements in either of two formats.

List the five component accounts included in stockholders' equity.

The single-step income statement format combines all revenues and expenses into a single category and all gains and losses into another single category.

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

Truko,Inc.provided the following partial-trial balance for the current year.Prepare a multi-step income statement for the year ended December 31.Truko is subject to a 40% income tax rate.