The Income Statement can be used to asses?
A. Creditworthiness
B. Solvency
C. Liquidity
D. All of the Above
Creditworthiness
Which of the following occur from peripheral or incidental transactions?
A. Sales Revenue
B. Cost of Goods Sold
C. Discontinued Operations
D. Gain on the Sale of Equipment
Gain on the Sale of Equipment
In the Single-Step Income Statement:
A. Interest revenue and rental revenue are reported as other revenues and gains
B. Just 2 groupings exist; revenues and expenses
C. Expenses are classified by functions, such as merchandising, selling and administration.
D. An income from operations figure is presented
Just two groupings exist; revenues and expenses
Which of the following is an acceptable method of presenting the income statement?
A. A classified income statement
B. A current operating performance income statement
C. A condensed income statement
D. None
B. A condensed income statement
Income tax expense is considered an unusual item on the income statement?
A. True
B. False
B. False
Non-Controlling Interest
A. Is reported as a separate item below net income or loss
B. Is not shown on the face of the income statement
C. Is shown in a separate section of the income statement just after continuing operations but before net income
D. Is shown in a separate section of the income statement just after continuing operations
A. Is reported as a separate item below net income or loss
Companies are required to highlight certain items in the financial statements so that users can better determine the long-run earning power of the company. Which of the following is not one of those items?
A. Unusual gains and losses
B. Non-Controlling Interest
C. Discontinued Operations
D. Changes in Accounting Principle
D. Changes in Accounting Principle
Barger Enterprises has a loss from discontinued operations of $300,000, an unusual gain of $700,000 and a tax rate of 30%. At what amount should Barger report each item on the income statement?
A. What is the Loss from Discontinued Operations?
B. What is the Unusual Gain?
A. 210,000
B. 700,000
Earnings per share (EPS) is required to be reported on the income statement
A. True
B. False
A. True
A change in the method of inventory pricing from FIFO to LIFO would be accounted for as a (an)?
A. Part of discontinued operations
B. An unusual gain or loss
C. Change in accounting principle
D. Change in estimate
C. Change in Accounting Principle
If a company has a net loss during the year, this will reduce the company's year-end balance of retained earnings
True or False?
True
Gains and Losses that bypass net income but affect stockholders equity are referred to as:
A. Comprehensive Income
B. Other Comprehensive Income
C. Prior Period Income
D. Unusual gains and losses
Other Comprehensive Income
Which limitation of an Income Statement occurs when one company uses an accelerated depreciation method while another company uses straight-line depreciation?
Income numbers are affected by the accounting methods employed.
The major elements of the income statements are?
Revenues, Expenses, Gains, and Losses
Which of the Following Describes an Expense?
Outflows or other using-up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major or central operations
A multi-step income statement
A. highlights certain components of income that analysts use to compute ratios for assessing the financial performance of companies.
B. separates operating transactions from non-operating transactions.
C. matches costs and expenses with related revenues.
D. All of these answer choices are correct.
All of the above
Jackson Multi-Step Income
CGS $148,500
Dividend Revenue $3,750
Income Tax Expense $3,000
Operating Expenses $79,500
Sales $255,000
In Jackson multiple-step income statement, gross profit?
Will be reported as $106,500
Sales - CGS
Unusual items, such as gains and losses, should be reported separately following income from continuing operations.
True or False?
False
The gain or loss from disposal of a component of a business is shown as a (an):
A. Unusual gain or loss
B. Part of discontinued operations
C. Income from Operations
D. Prior Period Adjustment
Part of Discontinued Operations
The single-step income statement emphasizes
Total Revenues and Total Expenses
Which of the following statements related to non-controlling interest is incorrect?
Non-controlling interest in net income is reported as an expense on the income statement.
Which of the following is true about intraperiod tax allocation?
Its purpose is to relate the income tax expense to the items which affect the amount of tax.
Earnings per share is computed as net income:
A. Divided by the common shares authorized
B. Minus preferred dividends divided by the weighted average of common shares outstanding
C. Divided by the ending common shares outstanding
D. Minus preferred dividends divided by the ending common shares outstanding
Minus preferred dividends divided by the weighted average of common shares outstanding
Sawyer, Inc. consistently estimated its bad debt expense at 1 percent of credit sales. However, in the current year Sawyer determines that it must revise upward the estimate of bad debts for the current year's credit sales to 2 percent, or double the prior years' percentage. Sawyer uses the revised estimate of 2% and calculates bad debt expense of $500,000. How is the change in the estimated bad debt expense reported in Sawyer's current year financial statements?
$500,000 of expense in the income statement as an operating expense.
Prior period adjustments are reported as:
an addition to (or a deduction from) the beginning balance of retained earnings.
The statement of stockholders' equity
reports the change in each stockholders' equity account and in total equity for the period.
Josie Corporation reported the following information for the current year:
Sales Revenue 1,000,000
CGS 700,000
Operating Expenses 110,000
Unrealized holding gain on available for sale securities 40,000
Cash Dividends paid to its shareholders 4,000
For the current year, Josie would report comprehensive income of(ignore income taxes):
$230,000
