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Unformatted text preview: CHAPTER 4 INCOME STATEMENT AND RELATED INFORMATION MULTIPLE CHOICE Conceptual Answer No. Description c 1. Elements of the income statement. d 2. Usefulness of the income statement. d 3. Methods of preparing income statements. b 4. Single-step income statement. b 5. Limitations of the income statement. a 6. Income statement presentation. b 7. Event with no income statement effect. a 8. Definition of an extraordinary item. d 9. Classification of an extraordinary item. d 10. Identification of an extraordinary item. a 11. Identification of an extraordinary item. d 12. Identification of an extraordinary item. a 13. Presentation of unusual or infrequent items. d 14. Identification of a change in accounting principle. d 15. Disclosure of a change in accounting principle. c 16. EPS disclosures on income statement. c 17. Reporting discontinued operations. d 18. Intraperiod tax allocation. d 19. Purpose of intraperiod tax allocation. c 20. Retained earnings statement. d 21. Prior period adjustment. d 22. Identification of a prior period adjustment. c 23. Comprehensive income items. c 24. Providing information about components of comprehensive income. MULTIPLE CHOICE Computational Answer No. Description c 25. Calculation of net sales. a 26. Presentation of gain on sale of plant assets. c 27. Calculate income before taxes and extraordinary items. b 28. Calculate extraordinary loss. a 29. Change in depreciation method. a 30. Events affecting income from continuing operations. b 31. Calculation of events affecting net income. d 32. Calculate balance of retained earnings. c 33. Disposal of a major business component. d 34. Calculate other comprehensive income. Test Bank for Intermediate Accounting, Eleventh Edition MULTIPLE CHOICE CPA Adapted Answer No. Description d 35. Calculate selling expenses. a 36. Calculate general and administrative expenses. a 37. Calculate selling expenses. a 38. Calculate general and administrative expenses. d 39. Calculate cost of goods manufactured. c 40. Calculate income before extraordinary item. a 41. Determine extraordinary loss. b 42. Determine infrequent gains not extraordinary. a 43. Determine infrequent losses not extraordinary. b 44. Identification of prior period adjustment. EXERCISES Item Description E4-45 Definitions. E4-46 Terminology. E4-47 Income statement disclosures. E4-48 Calculate net income from change in stockholders equity. E4-49 Calculate net income from change in stockholders equity. E4-50 Income statement classifications. E4-51 Income statement relationships. E4-52 Multiple-step income statement. E4-53 Classification of income and retained earnings statement items. PROBLEMS Item Description P4-54 Income statement form....
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- Spring '09
- Income Statement