46.Which of the following income statement figures would probably be the best indicator of a company’s future performance?a.Total revenues.b.Income from operations.c.Net income.d.Gross profit.Ans: B, SO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Performance Measurement
47.Which of the following is the best definition of sustainable income?
48.When preparing an income statement, which of the following is the proper order for income statement components?
49.Sophie's Dog Supplies has income before taxes of $275,000 and an extraordinary loss of $85,000. If the income tax rate is 34% on all items, the income statement should show income before irregular items and an extraordinary loss, respectively, of
50.If a company has an extraordinary gain of $20,000 and a 30% tax rate, what is the effect on net income?a.Increase of $20,000.b.Increase of $14,000.c.Increase of $6,000.d.No effect.Ans: B, SO: 2, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: Problem Solving, IMA: Reporting