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Exam 4: Income Statement and Related Information

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Question 51

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Which of the following is included in comprehensive income?

A) Investments by owners.
B) Unrealized gains on available-for-sale securities.
C) Distributions to owners.
D) Changes in accounting principles.

E) B) and C)
F) A) and D)

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Question 52

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Which of the following items would be reported at its gross amount on the face of the income statement?

A) Extraordinary loss
B) Prior period adjustment
C) Cumulative effect of a change in an accounting principle
D) Unusual gain

E) B) and C)
F) C) and D)

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Question 53

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If plant assets of a manufacturing company are sold at a gain of $1,500,000 less related taxes of $450,000, and the gain is not considered unusual or infrequent, the income statement for the period would disclose these effects as

The accounting profession has adopted a current operating performance approach to income reporting.

Ortiz Co. had the following account balances: What would Ortiz report as total expenses in a single-step income statement?

Leonard Corporation reports the following information:Correction of overstatement of depreciation expense Leonard should report retained earnings, 1/1/14, as adjusted at

Which of the following is an example of managing earnings down?

Companies report the results of operations of a component of a business that will be disposed of separately from continuing operations.

In calculating earnings per share, companies deduct preferred dividends from net income if:

Terminology.In the space provided, write the word or phrase that is defined or indicated.

IFRS allows for revaluation of long-term tangible and intangible assets with the differencesimpacting equity but not net income.

The income statement provides investors and creditors with information to predict all of the following except the:

An income statement shows "income before income taxes and extraordinary items" in the amount of $3,425,000. The income taxes payable for the year are $1,800,000, including $600,000 that is applicable to an extraordinary gain. Thus, the "income before extraordinary items" is

Listed below in scrambled order are 13 income statement categories. Use the numerals 1 through 13 to indicate the order in which these categories should appear on a multiple-step income statement. ( ) Discontinued operations. ( ) Cost of goods sold. ( ) Other revenues and gains. ( ) Net income. ( ) Income taxes. ( ) Sales revenue. ( ) Gross profit on sales. ( ) Income from operations. ( ) Income from continuing operations before income taxes. ( ) Operating expenses. ( ) Extraordinary item. ( ) Income before extraordinary items. ( ) Income from continuing operations.

A correction of an error in prior periods' income will be reported

A material item which is unusual in nature or infrequent in occurrence, but not both should be shown in the income statement

A company that reports a discontinued operation or an extraordinary item must report per share amounts for these items.

Which of the following would represent the least likely use of an income statement prepared for a business enterprise?

Discontinued operations of a component of a business are classified as a separate item in the income statement:

In 2014, Benfer Corporation reported net income of $210,000. It declared and paid common stock dividends of $24,000 and had a weighted average of 70,000 common shares outstanding. Compute the earnings per share to the nearest cent.