Exam 11: Evaluating Performance: Earnings Quality, the Income Statement, the Statement of Comprehensive Income

Comprehensive income is reported on the statement of comprehensive income.

Roughly half of all financial statement frauds over the past two decades have involved:

Corporations with convertible securities outstanding such as convertible preferred stock report:

Operating income includes income from discontinued operations.

The ratio that uses weighted-average number of shares of common stock outstanding in the denominator is the:

Examples of fraud involving improper revenue recognition include:

Which of the following is reported as Other Losses and Expenses on the income statement of a major retailer?

If a company reports both basic and diluted EPS,diluted EPS will always be equal or lower than basic EPS.

One reason why taxable income and pretax accounting income may not be equal is due to the difference in depreciation methods used.

The independent auditors' report is addressed to:

Comprehensive income includes net income plus:

When calculating earnings per share,preferred dividends are:

Under International Financial Reporting Standards,which line item or caption below is NOT used?

For a retailer,how is Interest Expense classified on the income statement?

Publicly-traded companies have to file their annual financial statements with the Securities and Exchange Commission.

Items of comprehensive income,other than net income,do not enter into the determination of earnings per share.

Comprehensive income does not include foreign-currency translation adjustments.

The income statement and the statement of cash flows often paint the same picture of the company.

A company with low earnings quality is more likely to report ________ than a company with high earnings quality.

In a foreign-currency transaction,foreign currencies must be converted to U.S.dollars for financial reporting purposes.