ch04 - CHAPTER 4 INCOME STATEMENT AND RELATED INFORMATION...

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Unformatted text preview: CHAPTER 4 INCOME STATEMENT AND RELATED INFORMATION TRUE-FALSE Conceptual Answer No. Description T 1. Usefulness of the income statement. F 2. Limitations of the income statement. F 3. Earnings management. T 4. Transaction approach of income measurement. T 5. Single-step income statement. T 6. Revenues and gains. F 7. Multiple-step vs. single-step income statement. F 8. Multiple-step income statement. T 9. Multiple-step vs. single-step income statement. F 10. Current operating performance approach. T 11. Reporting discontinued operations. F 12. Reporting extraordinary items. F 13. Irregular items. T 14. Intraperiod tax allocation. F 15. Reporting earnings per share. F 16. Computation of earnings per share. T 17. Prior period adjustments. F 18. Retained earnings restrictions. F 19. Comprehensive income definition. T 20. Reporting other comprehensive income. MULTIPLE CHOICE Conceptual Answer No. Description c 21. Elements of the income statement. d 22. Usefulness of the income statement. b 23. Limitations of the income statement. d S 24. Use of an income statement. d S 25. Income statement reporting. b 26. Single-step income statement. d 27. Methods of preparing income statements. a 28. Income statement presentation. b 29. Event with no income statement effect. c S 30. Net income effect. b P 31. Selling expenses. b P 32. Reporting merchandise inventory. a 33. Definition of an extraordinary item. d 34. Classification of an extraordinary item. d 35. Identification of an extraordinary item. a 36. Identification of an extraordinary item. Test Bank for Intermediate Accounting, Twelfth Edition MULTIPLE CHOICE Conceptual (cont.) Answer No. Description d 37. Identification of an extraordinary item. a 38. Presentation of unusual or infrequent items. d 39. Identification of a change in accounting principle. d 40. Classification of extraordinary items. c 41. EPS disclosures on income statement. c 42. Reporting discontinued operations. d 43. Intraperiod tax allocation. d 44. Purpose of intraperiod tax allocation. c S 45. Reporting unusual or infrequent items. c S 46. Earnings per share disclosure. d P 47. Reporting correction of an error. c 48. Retained earnings statement. d 49. Prior period adjustment. d 50. Identification of a prior period adjustment. c 51. Comprehensive income items. c 52. Providing information about components of comprehensive income. MULTIPLE CHOICE Computational Answer No. Description a 53. Single-step income statement. c 54. Multiple-step income statement. c 55. Multiple-step income statement. c 56. Calculation of net sales. a 57. Presentation of gain on sale of plant assets. a 58. Extraordinary items. a 59. Extraordinary items. a 60. Calculate income before extraordinary items....
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ch04 - CHAPTER 4 INCOME STATEMENT AND RELATED INFORMATION...

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