Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Textbook Question
Chapter 5, Problem 5MC
A loss from the sale of a component of a business enterprise is reported separately as a component of income:
- a. after income from continuing operations
- b. in income from continuing operations
- c. after income tax expense
- d. before income from continuing operations
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When an entity discontinued an operation and disposed of the discontinued operation the transaction should be reported in the income statement as:
A. a prior period erro
B. other income and expense item
C. a single amount after income from continuing operations and before net income
D. a bulk sale of assets included in income from continuing operations
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
Which of the following is true regarding the incomestatement?a. The income statement is sometimes called the statement of operations.b. The income statement reports revenues, expenses, andliabilities.c. The income statement only reports revenue for whichcash was received at the point of sale.d. The income statement reports the financial position ofa business at a particular point in time.
Chapter 5 Solutions
Intermediate Accounting: Reporting And Analysis
Ch. 5 - In general, how does the income statement help...Ch. 5 - Prob. 2GICh. 5 - Define income under the capital maintenance...Ch. 5 - Prob. 4GICh. 5 - What is net income?Ch. 5 - What three things must a company determine to...Ch. 5 - Prob. 7GICh. 5 - Prob. 8GICh. 5 - Give an example and explanation for each of the...Ch. 5 - Define expenses. What do expenses measure?
Ch. 5 - Prob. 11GICh. 5 - Define gains and losses. Give examples of three...Ch. 5 - Prob. 13GICh. 5 - What items are included in a companys income from...Ch. 5 - How are unusual or infrequent gains or losses...Ch. 5 - What is interperiod tax allocation?Ch. 5 - Prob. 17GICh. 5 - Prob. 18GICh. 5 - Prob. 19GICh. 5 - Prob. 20GICh. 5 - Prob. 21GICh. 5 - Prob. 22GICh. 5 - Prob. 23GICh. 5 - Prob. 24GICh. 5 - Prob. 25GICh. 5 - Prob. 26GICh. 5 - Prob. 27GICh. 5 - Prob. 28GICh. 5 - Prob. 29GICh. 5 - Prob. 30GICh. 5 - What is the rate of return on common equity? What...Ch. 5 - Prob. 32GICh. 5 - Prob. 33GICh. 5 - Which of the following is expensed under the...Ch. 5 - The following information is available for Cooke...Ch. 5 - The following information is available for Wagner...Ch. 5 - Prob. 4MCCh. 5 - A loss from the sale of a component of a business...Ch. 5 - In a statement of cash flows, receipts from sales...Ch. 5 - Brandt Corporation had sales revenue of 500,000...Ch. 5 - Refer to RE5-1. Prepare a single-step income...Ch. 5 - Shaquille Corporation began the current year with...Ch. 5 - Dorno Corporation incurred expenses during the...Ch. 5 - Niler Corporation reported the following after-tax...Ch. 5 - Jordan Corporation reported retained earnings of...Ch. 5 - Prob. 7RECh. 5 - Prob. 8RECh. 5 - Amelias Bookstore reported net income of 62,000...Ch. 5 - Prob. 10RECh. 5 - Prob. 1ECh. 5 - Cost of Goods Sold and Income Statement Schuch...Ch. 5 - Income Statement Calculation OConnor Companys...Ch. 5 - Results of Discontinued Operations On November 30,...Ch. 5 - Multiple-Step and Single-Step In coin Statements...Ch. 5 - Prob. 6ECh. 5 - Multiple-Step and Single-Step Income Statements,...Ch. 5 - Cost of Goods Sold, Income Statement. and...Ch. 5 - Net Cash Flow from Operating Activities The...Ch. 5 - Prob. 10ECh. 5 - Statement of Cash Flows The following items...Ch. 5 - Statement of Cash Flows The following are several...Ch. 5 - Classifications Where would each of the following...Ch. 5 - Rate of Change nalyses eiher Company presents the...Ch. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Income Statement and Retained Earnings Huff...Ch. 5 - Prob. 18ECh. 5 - Interim Reporting (Appendix 5.1) Miller Company...Ch. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Income Statement, Lower Portion Cunningham Company...Ch. 5 - Financial Statement Violations of U.S. GAAP The...Ch. 5 - Misclassiflcations Rox Corporations multiple-step...Ch. 5 - Misclassifications Olson Companys bookkeeper...Ch. 5 - Complex Income Statement The following items were...Ch. 5 - Prob. 8PCh. 5 - Financial Statement Deficiencies The following is...Ch. 5 - Comprehensive: Balance Sheet from Statement of...Ch. 5 - Net Income and Comprehensive Income At the...Ch. 5 - Statement of Cash Flows A list of Fischer Companys...Ch. 5 - Statement of Cash Flows The following are Mueller...Ch. 5 - Prob. 14PCh. 5 - Rate of Change Analyses and Ratios Analyses The...Ch. 5 - Comprehensive: Income Statement and Retained...Ch. 5 - Comprehensive: Income Statement and Supporting...Ch. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Prob. 20PCh. 5 - Prob. 1CCh. 5 - Prob. 2CCh. 5 - Prob. 3CCh. 5 - Prob. 4CCh. 5 - Nonrecurring Items Lynn Company sells a component...Ch. 5 - Prob. 6CCh. 5 - Accrual Accounting GAAP requires the use of...Ch. 5 - Ethics and Sale of Operating Component It is the...Ch. 5 - Analyzing Starbuckss Income Statement and Cash...Ch. 5 - Prob. 11C
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
If a company capitalizes costs that should be expensed, how is its income statement for the current period impacted? A. Assets understated B. Net Income understated C. Expenses understated D. Revenues understated
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A prior period adjustment should be reflected, net of applicable income taxes, in the financial statements of a business entity in the: a. retained earnings statement after net income but before dividends b. retained earnings statement as an adjustment of the opening balance c. income statement after income from continuing operations d. income statement as part of income from continuing operations
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What items are included in a companys income from continuing operations? How are these categorized if the company uses (a) a single-step format or (b) a multiple-step format?
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How are unusual or infrequent gains or losses reported on a company's income statement?
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Which of the following is a measurement of earnings that represents the profit before interest, taxes, depreciation and amortization are subtracted? A. net income B. retained earnings C. EBITDA D. EPS
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Profit and Loss Account shows the:
Total Capital Employed
Profit and Loss through sale of assets
Net Profit earned by business
None of these
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In which account, how do businesses keep track of their profits arising from the sale of tangible assets?A) Other Income To Be AccountedB) Debited to Ordinary Income and ProfitsC) Other Discounts will be credited to your accountD) Prior Period Income and Profits Will Be AccountedE) Other Extraordinary Income and Profits Will Be Accounted
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What is the accounting treatment for discontinued operations?
A :
It is reported at its gross amount as an "other revenue or gain" or "other expense or loss".
B :
It is reported as an "other revenue or gain" or "other expense and loss", net of tax.
C :
It only needs to be disclosed in the footnotes of the financial statements.
D :
It may be treated as sales revenue (if it is a gain) and as an operating expense (if it is a loss).
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Which statement is incorrect? *
The FUNCTIONAL Income Statement classifies expenses into cost of sales, selling expenses and general administrative expenses, among others.
Income encompasses both revenues and gains. Revenues arise in the ordinary course of business activities while gains are not.
Expenses encompasses both expenses and losses. Losses usually comprise the majority amount of deductible expenses to arrive at taxable income.
The statement of comprehensive income encompasses all income and expenses, whether they are recognized in profit or loss determination or recognized directly in equity.
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Revenue from sources other than the primary operating activity of a business like interest expense is listed as _________ on the Income Statement?
Group of answer choices
secondary revenue
primary revenue
other income or other revenue
income from operations
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The amount of assets consumed during the performance of business operations in a period while delivering or producing goods and services will be shown in the income statement as:
a. expenses
b. gains
c. assets
d. revenues
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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
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