Question 1

Comprehensive income is net income plus the periods change in accumulated other comprehensive income.

Accepted Answer

A) True 
 B)False

Question 2

Presenting an item after tax, with the related tax deducted, is called net-of-tax presentation.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following would be classified as an extraordinary item on the income statement?

Accepted Answer

A)  Loss from a strike
B)  Correction of an error related to a prior period
C)  Write-off of obsolete inventory
D)  Loss on disposal of a segment of business
E)  Loss from prohibition of a productF) B) and C)
G) A) and E)

Question 4

Extraordinary items are always presented gross of applicable income taxes.

Accepted Answer

A) True 
 B)False

Question 5

The following relate to Data Original in 2012.What is the ending inventory?  Purchases$540,000Beginning Inventory80,000Purchase Returns10,000Sales800,000Cost of Goods Sold490,000\begin{array} { l r } 	ext {Purchases}&\$540,000\	ext {Beginning Inventory}&80,000\	ext {Purchase Returns}&10,000\	ext {Sales}&800,000\	ext {Cost of Goods Sold}&490,000\\end{array}PurchasesBeginning InventoryPurchase ReturnsSalesCost of Goods Sold​$540,00080,00010,000800,000490,000​

Accepted Answer

A)  $120,000
B)  $140,000
C)  $210,000
D)  $260,000
E)  none of the answers are correct F) B) and E)
G) A) and B)

Exam 4: Income Statement

Extraordinary items are always presented gross of applicable income taxes.

Correct Answer
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Comprehensive income is net income plus the periods change in accumulated other comprehensive income.

Correct Answer
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Presenting an item after tax, with the related tax deducted, is called net-of-tax presentation.

Correct Answer
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Which of the following would be classified as an extraordinary item on the income statement?

Correct Answer
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The following relate to Data Original in 2012.What is the ending inventory? $\begin{array} { l r } \text {Purchases}&\$540,000\\\text {Beginning Inventory}&80,000\\\text {Purchase Returns}&10,000\\\text {Sales}&800,000\\\text {Cost of Goods Sold}&490,000\\\end{array}$

Correct Answer
verified

Exam 4: Income Statement

Extraordinary items are always presented gross of applicable income taxes.

Correct AnswerverifiedShow Answer

Comprehensive income is net income plus the periods change in accumulated other comprehensive income.

Correct AnswerverifiedShow Answer

Presenting an item after tax, with the related tax deducted, is called net-of-tax presentation.

Correct AnswerverifiedShow Answer

Which of the following would be classified as an extraordinary item on the income statement?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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