Exam 11: The Income Statement, the Statement of Comprehensive Income, and the Statement of Shareholders Equity

The dollar amount of a company's net income for each common share outstanding is referred to as:

Under IFRS a deferred tax liability is classified as a ________ and income tax payable is classified as a ________ on the balance sheet.

Under IFRS, when income tax payable exceeds income tax expense:

An unqualified (or clean) opinion issued by an external auditor means:

The deprecation method used by a company for income tax purposes will not normally be the same as the method used for financial reporting.

On January 1, 2014, Balises Corporation's Retained Earnings account has a balance of $300,000. During 2014, cash dividends of $20,000 were declared and stock dividends with a market value of $40,000 were declared. Net income for 2014 amounted to $90,000. On June 30, 2014, Balises Corporation issued 5,000 shares of common shares at $10 per share. What is the balance in Retained Earnings appearing on the statement of shareholders' equity on December 31, 2014?

Under IFRS if in one year Zip's income taxes payable exceeds its income tax expense then there is a deferred tax liability.

Mechatronic Bogie Ltd., whose income tax rate is 35%, has taxable income of $482,000 and pretax accounting income of $566,000. The entry to record the income tax includes a:

When a company sells a segment of its business, the gain or loss on the disposal of the segment is shown as:

Operating income excludes income from discontinued operations.

Mitrac Corporation, whose income tax rate is 35%, has pretax accounting income of $636,000 and taxable income of $748,000. Under IFRS, the entry to record the income tax includes a:

A company that switches from straight-line amortization to double-declining-balance amortization during an accounting period must report this change on the financial statements as:

Given the following information prepare a Statement of Shareholders' Equity for Q8 Inc for 2014.

C-series Corporation's net income for the year ending on December 31, 2013, was $365,000. At the end of 2013, the corporation had outstanding 4,000 shares of $10 nonconvertible preferred shares and 10,000 common shares issued at $20. No shares were issued or retired during 2013. The numerator to be used in the earnings-per-share calculation is:

Under IFRS for a given year if income taxes payable is less than income tax expenses, a deferred tax liability is recorded.

European Rail Corporation, whose income tax rate is 40%, has taxable income of $815,000 and pretax accounting income of $846,000. Under IFRS the entry to record the income tax includes a:

Corrections to the beginning balance of retained earnings for errors of an earlier period are called:

On January 1, 2013, Assembly System Corporation's Retained Earnings account had a balance of $675,000. During 2013, cash dividends of $25,000 and stock dividends with a market value of $55,000 were declared and distributed. Assembly System Corporation had a net loss of $5,000 in 2013. What is the balance in Retained Earnings that would appear on Assembly System Corporation's statement of shareholders' equity on December 31, 2013?

Net income is considered by many users to be a more reliable indicator of future earnings than earnings from continuing operations.

A statement of shareholders' equity would not include which type of transaction?