Which statement is incorrect? *

Q: hen financial income is higher than taxable income and no permanent differences, the company most…

A: Solution Concept Deferred tax asset or deferred tax liabilities shall be recognized when there is…

Q: Which of the following best describes the distinction between expenses and losses? Losses are…

A: Expenses :  Expense means the cost which a company incurs to earn revenue. For example payment of…

Q: A loss due to a discontinued operation should be reported on the income statement   a. as an…

A: Introduction: An income statement is a summary of your company's profits and losses over a given…

Q: Is all accounting income taxable? is there any accounting income that is not taxable? Please Explain…

A: Accounting income is the profit left over after all applicable expenses have been deducted from…

Q: Which of the following is included in computing the total gross income?  Incidental revenue Net…

A: Gross Income - It the amount of total income which includes from the other sources include operating…

Q: Since the corporate OSD is based on gross income, it is deemed to replace all except:  Regular…

A: OSD stands for Optional Standard Deduction. It is a type of deduction which a corporate chooses and…

Q: Which statement is incorrect? * The FUNCTIONAL Income Statement classifies expenses into cost of…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: 7. Schedular system of taxation means: all types of income are added together to arrive at gross…

A: Taxation refers to the tax rate which is imposed by the authorities of government on the income…

Q: What is the difference between income which is "realized" and income which is "recognized"?  Which…

A: Financial accounting requires to report all the income and expenses on the books and compute the…

Q: Statement 1: The other comprehensive income section shall present line items for amounts of other…

A: The question is based on the concept of the income tax act and rules for reporting line items. Other…

Q: The statement of profit or loss and other comprehensive income shall present

A: Profit or loss and other comprehensive income: this is a statement prepared by the company for…

Q: What are the four types of gains and losses not included in income statements in comprehensive…

A:

Q: Which of the following refers to the elements of Comprehensive Income?  a) Net Income, Interest…

A: Net income is the excess of sales over all the expenses including interest expense and income taxes.

Q: An expense is recognized immediately in the statement cs comprehensive income when expenditure…

A: An expenditure that produces the future economic benefit over some periods is capitalized in the…

Q: Why do many companies use one method to calculate depreciation for the income statement prepared for…

A: Companies use different methods for tax reporting and financial reporting because by using the…

Q: transitory earnings are present, which of the following correctly depicts the order used on the…

A: Transitory earning are temporary earnings that are not earned in the regular course of business.…

Q: Which of the following is added to a taxpayer’s gross income from business in computing the total…

A: Gross Income - It is the amount of total income earned during the particular period from all sources…

Q: What is “comprehensive income”? Its composition varies from company to company but may include which…

A: Comprehensive income: The total of net income and other comprehensive income (OCI) is referred to as…

Q: 9. The following statements are correct, except: a. Profit or loss is the total income less…

A: Profit & Loss A/c Statement is an important part of Accounting & used for the purpose to…

Q: If a company capitalizes costs that should be expensed, how is its income statement for the current…

A: Any capitalization cost increases the assets and there will be no impact on the income statement.…

Q: True or False Questions. 1. A contribution approach income statement can usually be easily prepared…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: net income before tax that the company would disclose on an ement is: absorption-costing inc

A: Absorption costing is a cost accounting method to find out the cost of a product. It takes into…

Q: The disclosure requirements for an operating segment do not include: a. Unusual items b. Income tax…

A: Operating segment is the revenue earning segment of the company which has its own expenses and…

Q: Which statement is incorrect? *   Under the transactions approach, net income is computed as the…

A: The Single Statement of Comprehensive Income:- It is a statement that presents the financial…

Q: If a company capitalizes costs that should be expensed, how is its income statement for the…

A: A capitalized cost seems to be an element that is added to the cost structure of a fixed asset on a…

Q: Which of the following is not a component of other comprehensive income under GAAP? earnings gains…

A: Other comprehensive income means those items of revenues and expenses that are not part of Profit…

Q: TRUE OR FALSE The change in Gross Income will have the same changes to Taxable Net Income because…

A: Based on the above statement we answer the correctness of the statement along with a reason.

Q: Required: Prepare a statement of comprehensive income (as discussed and illustrated on pages 22-23…

A: The one Statement format in which Comprehensive income is calculated using single format of…

Q: A taxable income always results when a. none of the choices. b. revenues exceed the cost of goods…

A: Taxable income is the value at which the tax is calculated by the company.It is calculated by…

Q: Choose the letter of the correct answer.

A: Financial Statement - Financial statements describe an entity's financial activity and condition. At…

Q: What is the purpose of arranging an income statement toshow subtotals for income from continuing…

A: Income statement is prepared to compute the total net profit or loss generated or incurred during an…

Q: If a functional expense classification is used for the statement of comprehensive income, what must…

A: Expenses: Expenses means money spent for getting revenue to the entity. It involves cost of…

Q: Which statement is incorrect regarding other comprehensive income?

A: Other comprehensive income is the income which the company has not yet earned but yes will be earned…

Q: On the multiple-step income statement, which of the following would be the least likely to be found…

A: Other losses and incomes head in the multistep income statement shows all the expenses and revenues…

Q: Interest revenue need not be added to the gross income to compute for the total income.

A: Gross income and net income are two concepts associated with the accounting that helps to identify…

Q: Corporate taxable income is based on an income statement that is similar to income statements…

A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…

Q: 7. The following statements are correct, except: Other comprehensive income comprises items of…

A: Since we answer only one question, we will answer the first question. Please resubmit the remaining…

Q: hich of the following statements is not in accordance with AASB 101 Presentation of Financial…

A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…

Q: Advantages and Disadvantages of Reporting Items in Other comprehensive income instead of on the face…

A: Other Comprehensive income: OCI includes all financial items which result in changes in the…

Q: For purposes of the accumulated earnings tax, earnings can be accumulated for reasonable needs of…

A: An accumulated earnings tax is the tax that is imposed by the government on companies that…

Q: Which of the following is not an acceptable way of displaying the components of other comprehensive…

A: Comprehensive income: Comprehensive income represents the amount of net income plus other…

Q: Comprehensive income includes: profit or Loss only other comprehensive income only both profit or…

A: Comprehensive income: It is the income generated from nonowner sources such as derivatives held for…

Q: Which of the following is notan acceptable way of displaying the components of other comprehensive…

A:

Q: Define extraordinary items. How are extraordinaryitems distinguished from items that are presented…

A: Extraordinary items are those item that are unusual and that are not expected by the management of…

Q: Which statement is incorrect regarding presentation of statement  of  profit  or  loss  and  other…

A: As per the guidelines, only one question is allowed to be answered. Please upload different…

Q: Comprehensive income is defined as plus other * .comprehensive income Gains And Losses Net Income…

A: Income means the amount earned by an entity after deducting the expenses.