ACC 301 Chapter 4 quiz

ACC 301 Chapter 4 quiz - ACC 301 Quiz Ch 4 Multiple Choice...

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ACC 301 Quiz Ch 4 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. The transaction approach to determining income is a concept in which a. income is measured as the amount that an equity could consume during a period and be as well off at the end of that period as it was at the beginning. b. market values adjusted for the effects of inflation or deflation are used to calculate in- come. c. the financial statement effects of business events are classified as revenues, gains, ex- penses, and losses, which are used to measure and define income. d. income equals the change in market value of the firm's outstanding common stock for the period. ____ 2. A material loss should be presented separately as a component of income from continuing operations when it is a. infrequent in occurrence and unusual in nature. b. infrequent in occurrence but not unusual in nature. c. a cumulative effect-type change in accounting principle. d. an extraordinary item. ____ 3. The normal ordering of items in the income statement would be best illustrated by which of the following? a. Extraordinary items, cumulative effects, income from continuing operations, discontinued operations, net income b. Income from continuing operations, discontinued operations, extraordinary items, cumu- lative effects, net income c. Income from continuing operations, extraordinary items, cumulative effects, discontinued operations, net income d. Discontinued operations, income from continuing operations, extraordinary items, cumu- lative effects, net income ____ 4. A single-step income statement is a format that a. compares the current year's income with last year's income. b.
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ACC 301 Chapter 4 quiz - ACC 301 Quiz Ch 4 Multiple Choice...

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