Quiz 5 ch4 second part key

Quiz 5 ch4 second part key - should be reported as a(n) 1....

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Quiz 5 (ch 4) Key 1. The term "comprehensive income" 1. must be reported on the face of the income statement. 2. includes all changes in equity during a period except those resulting from investments by and distributions to owners. 3. is the total net change in owners' equity for the period. 4. is synonymous with the term "net income." 2. Most forecasting exercises begin with a forecast of 1. sales. 2. total assets. 3. net income. 4. cash. 3. When a business segment is discontinued during the year, the gain or loss on disposal 1. is reported as an extraordinary item. 2. should include only the loss or income from operating the discontinued segment for the current period. 3. excludes only the gain or loss on disposal of the segment. 4. should be shown net of applicable income taxes. 4. A flood destroyed the home office building of a company located in an inland city. This
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Unformatted text preview: should be reported as a(n) 1. extraordinary loss. 2. prior period adjustment. 3. loss from continuing operations. 4. loss from discontinued operations. 5. The amount of income reported for tax purposes 1. is normally greater than the net income reported to stockholders. 2. must be computed according to GAAP. 3. is used to compute earnings per share. 4. may differ from the amount of income determined for financial reporting purposes. 6. If a company anticipates a 40% increase in sales volume, then it is most likely that the company will need 1. about a 40% increase in property, plant, and equipment. 2. about a 40% increase in accounts payable. 3. about a 40% increase in bank loans payable. 4. about a 40% increase in operating profit....
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