Chapter 4 final submission

Chapter 4 final submission - Chapter 4 part...

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Questions 10) a) Both revenues and gains include inflows of assets and involve transactions but the main difference is th b) Expenses are the outflows of assets or using up of assets where as losses are the decrease in 11) The advantages of the single-step income statement are that they only show total revenues and e 14) The company should restate the prior statements for the effects of the error 15) a) The transaction will be recorded the $ 113,000 as an extraordinary item and will be shown in a sep b) It will be treated as unusual gain or loss and will be shown in a separate section above income bef c) that is a correction of error and the company will restate the prior years of the depreciation in the in d) that is considered a change in the estimates which will only be changed in the affected account, no e)This cash payment of $ 725,000 for the patent infringement suit is an unusual loss for the company f) This will be treated as a discontinued operation and will be shown on the income statement in a diff 16) a) it will be shown in a Operating section under the administrative expenses b) Extraordinary items section c) Discontinued operations section d) income tax section e) in a different section to restate the error f) Selling expenses 17) a) Operating section b) operating expense section c) operating expense section d) seperate section e) Other revenues and gain section f) Other revenues and gain
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This note was uploaded on 04/14/2011 for the course ACCT 3202 taught by Professor Kenmichael during the Spring '11 term at University of Minnesota Duluth.

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Chapter 4 final submission - Chapter 4 part...

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