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

The net of foreign-currency transaction gains and losses will appear on the income statement.

A company is required to report both basic and diluted earnings per share when the:

Extraordinary gains and losses are shown "net of tax" on the income statement.

A corporation's net income receives more attention than any other financial statement item.Why?

Income tax expense is used to calculate income from operations.

When predicting a company's future income,financial analysts exclude:

What is the CORRECT order to list line items on the income statement?

Assume it is the first year of operations.When pretax accounting income exceeds taxable income,a:

The first paragraph of the combined audit report on financial statements and internal controls:

A company has a Foreign-Currency Transaction Loss of $1,000 and a Foreign-Currency Transaction Gain of $10,000.How is this information reported on the income statement?

An event or transaction should be reported as an extraordinary item if it is unusual in nature and if it occurs infrequently.

A company reports basic earnings per share of $5.00 per share.The company has convertible preferred stock that can be converted into common stock.What will fully diluted earnings per share equal?

Which statement about a company's internal controls over financial reporting is FALSE?

The purpose of channel stuffing is to increase revenues.

Eastwich Corporation has pretax accounting income of $575,000 and taxable income of $560,000.The company's income tax rate is 30%.The journal entry to record the income tax includes a:

On June 15,Copps Stores sold twenty-five computers,on account,to a company located in Argentina for 3,000,000 pesos.On that date the peso is worth $0.079.On July 15,when the peso was worth $0.070,payment was received.The journal entry on July 15 by Copps Stores would include a:

Comprehensive income includes net income plus:

The Wheelchair Company reports the following for the fiscal year ending December 31,2015: What is comprehensive income for the fiscal year ending December 31,2015?

The loss incurred as a result of the impairment of goodwill should be reported as:

On August 1,Deluka Computers,Inc.purchased thirty computer chips,on account,from a company located in Taiwan for 500,000 Taiwan dollars.On that date the Taiwan dollar is worth $0.040.On September 1,when the Taiwan dollar was worth $0.038,payment was made.Deluka Computers uses the perpetual inventory system.The journal entry on August 1 by Deluka Computers,Inc.would be: