Which is a incorrect statement below? A Change in revaluation surplus is an Oci that will be reclassified to retained earnings. B An entity may present its comprehensive income using a single statement approach. Gain or loss from translating financial statements of a foreign operation is an OCI that will be reclassified subsequently to retained earnings.

Which is a incorrect statement below? A Change in revaluation surplus is an Oci that will be reclassified to retained earnings. B An entity may present its comprehensive income using a single statement approach. Gain or loss from translating financial statements of a foreign operation is an OCI that will be reclassified subsequently to retained earnings.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 23MCQ

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Which is a incorrect statement below? A. Change in revaluation surplus is an OCI that will be reclassified to retained earnings.B. An entity may present its comprehensive income using a single statement approach.C. Gain or loss from translating financial statements of a foreign operation is an OCI that will be reclassified subsequently to retained earnings.D. Sales commissions are part of selling expenses.
Following IFRS, which statement is false? Group of answer choices If the long-term operating asset's fair value increases in subsequent accounting periods, after an initial write-down, the firm reports the unrealized gain on the income statement, but only to the extent of previously recognized losses. The revaluation surplus account is reported as other comprehensive income on the statement of comprehensive income. If the revaluation initially decreases the long-term operating asset's carrying value, the firm reports the difference between the carrying value and fair value as an unrealized loss on the income statement. If the long-term operating asset's fair value increases in subsequent accounting periods, after an initial write-down, the firm reports the unrealized gain in the revaluation surplus account.
A firm's market-to-book ratio might be greater than 1.0 due to accounting reasons. An example of an accounting reason that would cause the market-to-book ratio to increase is a. straight-line methods of depreciation. b. using LIFO versus FIFO for inventory. c. level 1 fair values. d. off-balance-sheet assets arising from investments in successful research and development programs that are expensed according to conservative accounting principles.
What is one problem in translating retained earnings using either the temporal or current rate method? A) There is no problem, since both methods use the historic rate method for stockholders' equity accounts. B) Dividends are based on an average cost method. C) Net income is calculated differently, depending upon which method is used. D) Dividends are based on the current exchange rate under the current rate method, while they are based on historical rates under the temporal method.
Which of the following statements is true? Select one: a. The cost flow assumption used must match the physical flow of goods through the firm. b. Firms that use LIFO for tax purposes must also use it for book purposes. c. The Weighted Average Method can lead to phantom profits in periods of rising prices. d. There is a big difference in CGS for the different methods when a firm has high inventory turnover. PreviousSave AnswersNext
Assume an income statement with the following classifications: a. Revenuesb. Cost of goods soldc. Distribution expensesd.General & administrative expensese. Other revenues and expensesf. Income tax on income from continuing operationsg. Gain from disposal of discontinued operationsh. Income tax on gain from discontinued operationsi. None of the above Indicate by letter how each of the following should be classified: Income tax effect of loss on sale of plant Income tax on gain on sale of short-term investment in securities Interest expense Interest revenue Loss on sale of patent Dividend revenue from investment Sales returns Services sold
How does the inventory accounting choice (LIFO/FIFO) impact a firm's valuation? a)Deferring tax payments via LIFO accounting, decreases the the firm's value b)All of the above c)The timing of cash flows are the same under both LIFO and FIFO d)Has no impact on NOPAT e)By changing the timing of cash flows, the firm's valuation is impacted
Which of the following assumptions is embodied in the AFN equation? a. All balance sheet accounts are tied directly to sales. b. Common stock and long-term debt are tied directly to sales. c. Last year's total assets were not optimal for last year's sales. d. Fixed assets, but not current assets, are tied directly to sales. e. Accounts payable and accruals are tied directly to sales.
1. On reporting date, they are measured at market value.2. Initially measured at purchase price, which is the fair value at purchase date.3. Initially recognized at purchase price plus transaction costs.4. Generally, dividends received or receivable are recorded as dividend revenue.5. Change in fair value is not recognized unless there is permanent impairment in value.6. Dividends received are reported as a decrease in the carrying amount of the investment.7. Impairment loss and reversal of impairment are not separately accounted for.8. Bonus issue is not separately recognized in a formal accounting entry.9. Any difference between the cost of investment and the share i the fair value of the net identifiable assets is amortized and is considered an adjustment to the recognized income from this investment.10. At the date of the disposal of the securities, the equity account accumulated in other comprehensive income may be transferred to another equity account.11. The income recognized in…
Which of the following are not part of the components ofthe DuPont system for measuring and evaluating businessperformance?a. Return on sales.b. Residual income.c. Return on investment.d. Capital turnover.e. Number of patents.
If a company uses a non-GAAP fi nancial measure in an SEC fi ling, then the companymust:A . give more prominence to the non-GAAP measure if it is used in earnings releases.B . provide a reconciliation of the non-GAAP measure and equivalent GAAP measure.C . exclude charges requiring cash settlement from any non-GAAP liquidity measures.
Which statement is incorrect? *A.the FUNCTIONAL Income Statement classifies expenses into cost of sales, selling expenses and general administrative expenses, among others .b.Income encompasses both revenues and gains. Revenues arise in the ordinary course of business activities while gains are not. c.Expenses encompasses both expenses and losses. Losses usually comprise the majority amount of deductible expenses to arrive at taxable income. d.The statement of comprehensive income encompasses all income and expenses, whether they are recognized in profit or loss determination or recognized directly in equity. e.none of the above