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Acct 315 test 2 - Test#2 ch 4 5 Stock dividends distributed...

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Test #2 ch. 4, 5 Stock dividends distributed is not a current liability An unusual event not meeting the criteria for an extraordinary item would be shown as a separate item in operating revenues or expenses if material and supplemented by a footnote if deemed appropriate Patents are not a long term investment When a company discontinues an operation and disposes of the discontinued operation (component), the transaction should be included in the income statement as a gain or loss on disposal reported as an amount after continuing operations but before extraordinary items The post-balance sheet issue of a large amount of common stock would generally require disclosure, but no adjustment of the financial statements The post-balance sheet loss on a lawsuit (uncertain outcome) would require adjustment of the accounts before issuance of the financial statements Franchises are not a long-term investment
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