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9/29/13 7:08 PM Chapter 4 accounting flashcards | Quizlet Page 1 of 30 http://quizlet.com/8343061/chapter-4-accounting-flash-cards/ Intraperiod income tax presentation is primarily a matter of D. Allocation O Chapter 4 accounting About this set Created by: Created by: mgiloi on December 1, 2011 Classes: Classes: ACCT 3040 71 terms Terms Definitions 9/29/13 7:08 PM Chapter 4 accounting flashcards | Quizlet Page 2 of 30 http://quizlet.com/8343061/chapter-4-accounting-flash-cards/ The difference between single- step and multiple-step income statements is primarily an issue of B. Presentation Popson Inc. incurred a material loss which was not unusual in character but was clearly an infrequent occurrence. This loss should be reported as C. A separate line item within income fr continuing operations Provincial Inc. reported the following before-tax income statement items B. 180000 Freda's Florist reported the following before-tax income statement items for the year C 100000 and 128000 respectively 9/29/13 7:08 PM Chapter 4 accounting flashcards | Quizlet Page 3 of 30 http://quizlet.com/8343061/chapter-4-accounting-flash-cards/ ended Dec 31, 2011 Pro forma earnings A. are management's view of permanen earnings The distinction between operating and nonoperating income relates to B. Principal activities of the reporting en The principal benefit of separately reporting discontinued operations and extraordinary items is to enhance A. Predictive ability The Claxton Company manufactures children's toys B. As a discontinued operation, reporte income from continuing operations 9/29/13 7:08 PM Chapter 4 accounting flashcards | Quizlet Page 4 of 30 http://quizlet.com/8343061/chapter-4-accounting-flash-cards/ and also has a division that makes automobile parts. Due to a change in its strategic focus, the company sold the automobile parts division. The division qualifies as a component of the entity according to GAAP regarding disposal of long-lived assets. How should Claxton report the sale in its 2011 income statement? A. As an extraordinary item. On August 1, 2011, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a D. 125000 9/29/13 7:08 PM Chapter 4 accounting flashcards | Quizlet Page 5 of 30 http://quizlet.com/8343061/chapter-4-accounting-flash-cards/ separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2012. On January 31, 2012, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: On November 1, 2011, Jamison Inc adopted a plan to discontinue its barge division, which qualifies as a separate component of the business A. 65 million 9/29/13 7:08 PM Chapter 4 accounting flashcards | Quizlet Page 6 of 30 http://quizlet.com/8343061/chapter-4-accounting-flash-cards/ according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by... View Full Document

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