1. Revenue from persevering with
operations typically contains beneficial properties from nonoperating actions. (2 factors)
True
False
2. Revenue from persevering with operations is an
after-tax quantity consisting of revenues, bills, beneficial properties, and losses. (2
factors)
True
False
three. Revenue from persevering with operations equals
internet earnings solely within the absence of individually reported gadgets. (2 factors)
True
False
four. Intraperiod tax allocation is the method
of associating earnings tax results with the earnings assertion parts that
create these results. (2 factors)
True
False
5. If the efficient tax charge is 40%, a
$200,000 before-tax extraordinary acquire would enhance internet earnings by $120,000.
(2 factors)
True
False
6. If Normal Motors ceased manufacturing of the
Corvette, it might report any materials beneficial properties or losses that will consequence underneath
discontinued operations. (2 factors)
True
False
7. Discontinued operations require reclassification
of prior years’ earnings statements however no change in prior years’ internet earnings. (2
factors)
True
False
eight. Working earnings or loss from discontinued
operations as much as the disposal date is individually reported. (2 factors)
True
False
9. The measurement and disposal dates of
discontinued operations should fall throughout the similar fiscal yr. (2 factors)
True
False
10. If an general loss from discontinued
operations is predicted, then the loss is reported within the yr during which the
measurement date falls. (2 factors)
True
False
11. Estimated beneficial properties from discontinued
operations might be reported within the measurement yr solely to the extent of
estimated losses. (2 factors)
True
False
12. An merchandise should meet the subjective standards
of being each uncommon and rare to be reported as extraordinary. (2
factors)
True
False
13. The definition of what constitutes an
extraordinary merchandise needs to be unbiased of the working surroundings. (2
factors)
True
False
14. Materials restructuring prices are reported
as a component of earnings from persevering with operations. (2 factors)
True
False
15. The cumulative impact of a change in
accounting precept is the distinction between the ending steadiness in retained
earnings and what the steadiness would have been had the brand new technique been utilized
all yr. (2 factors)
True
False
16. A change in reporting entity is proven
individually on the earnings assertion within the yr of the change. (2 factors)
True
False
17. All companies should disclose EPS. (2
factors)
True
False
18. EPS disclosure is required for all gadgets
reported internet of tax on the earnings assertion. (2 factors)
True
False
19. Internet earnings is the place to begin in
disclosing complete earnings. (2 factors)
True
False
20. High quality of earnings refers back to the potential
of reported earnings or earnings to foretell future earnings. (2 factors)
True
False
21. The excellence between working and
nonoperating earnings pertains to: (2 factors)
a. Continuity of earnings.
b. Principal actions of the reporting
entity.
c. Consistency of earnings stream.
d. Reliability of measurements.
22. The principal good thing about individually
reporting discontinued operations, extraordinary gadgets, and cumulative results
of adjustments in accounting ideas is to boost: (2 factors)
a. Predictive potential.
b. Consistency in reporting.
c. Intraperiod continuity.
d. Complete reporting.
23. Interperiod earnings tax allocation relates
primarily to the precept of: (2 factors)
a. Valuation.
b. Going concern.
c. Matching.
d. Measurement.
24. A rare occasion for monetary
reporting functions is each: (2 factors)
a. Uncommon and materials.
b. Rare and vital.
c. Materials and rare.
d. Uncommon and rare.
25. The cumulative impact of a change in
accounting precept is reported as: (2 factors)
a. A restatement of retained earnings.
b. A separate line part of earnings.
c. A previous interval adjustment.
d. Revenue from modified operations.
26. The quantity reported for the cumulative
impact of a change in accounting precept is the net-of-tax distinction
between: (2 factors)
a. The present yr’s earnings underneath the previous
precept and the present yr’s earnings underneath the brand new precept.
b. The present yr’s ending retained earnings
underneath the previous precept and underneath the brand new precept.
c. The previous yr’s ending retained
earnings underneath the previous precept and underneath the brand new precept.
d. The present yr’s starting retained
earnings underneath the previous precept and the present yr’s internet earnings underneath the
new precept.
27. The monetary assertion presentation of
the cumulative impact of a change in accounting precept is most much like
that of reporting: (2 factors)
a. Adjustments in accounting estimates.
b. Prior interval changes.
c. Correction of errors.
d. Extraordinary gadgets.
28. In its Dec. 31, 2000 monetary statements,
MisterCard estimated that losses on its present receivables could be $18.2
million. Throughout 2001, MisterCard decided that the losses on the Dec. 31,
2000 receivables have been truly $19.four million. Ignoring taxes, MisterCard would
report, in its 2001 monetary statements, the extra $1.2 million loss on
receivables as: (2 factors)
a. A rare merchandise.
b. A previous interval adjustment.
c. A retroactive adjustment.
d. A present yr’s expense.
29. Which of the next shouldn’t be true about
EPS? (2 factors)
a. It have to be reported by all companies
whose inventory is publicly traded.
b. It could be disclosed both on the face of
the earnings assertion or in a disclosure word.
c. It have to be reported individually for
discontinued operations.
d. It have to be reported individually for
extraordinary gadgets.
30. The Gargas Company’s earnings assertion
contains internet earnings, extraordinary gadgets, and the cumulative impact of a change
in accounting precept. Earnings per share data could be supplied for:
(2 factors)
a. Internet earnings solely.
b. Extraordinary gadgets and internet earnings.
c. The cumulative impact of a change in
accounting precept and internet earnings.
d. Extraordinary gadgets, the cumulative impact
of a change in accounting precept, and internet earnings.
31. A reconciliation between internet earnings and
complete earnings would come with: (2 factors)
a. Unrealized losses however not unrealized beneficial properties.
b. Unrealized beneficial properties however not unrealized losses.
c. Unrealized losses and unrealized beneficial properties.
d. Neither unrealized losses nor unrealized beneficial properties.
32. Working money flows would exclude: (2
factors)
a. Curiosity acquired.
b. Curiosity paid.
c. Dividends paid.
d. Dividends acquired.
33. The assertion of money flows studies money
flows from the actions of: (2 factors)
a. Working, buying, and investing.
b. Borrowing, paying, and investing.
c. Financing, investing, and working.
d. Utilizing, investing, and financing.
34. Money flows from financing actions
embrace: (2 factors)
a. Curiosity acquired.
b. Curiosity paid.
c. Dividends acquired.
d. Dividends paid.
35. Adjustments in accounting estimates are
reported: (2 factors)
a. At present and prospectively.
b. Retroactively and at the moment.
c. Retroactively, at the moment, and
prospectively.
d. Prospectively.
36. Precepts Inc. incurred a cloth loss
which was common in character, however was clearly an rare prevalence.
This loss needs to be reported as: (2 factors)
a. A rare loss.
b. A separate line merchandise between earnings from
persevering with operations and earnings from dis continued operations.
c. A separate line merchandise inside earnings from
persevering with operations.
d. A separate line merchandise within the retained
earnings assertion.
37. Sulvane Co. studies earnings of $300,000
from persevering with operations earlier than earnings taxes and a before-tax extraordinary
lack of $80,000. All earnings is topic to a 30% tax charge. Within the yr’s earnings
assertion, Sulvane would present the next line-item quantities for earnings tax
expense and internet earnings: (2 factors)
a. $66,000 and $210,000.
b. $90,000 and $154,000.
c. $90,000 and $276,000.
d. $66,000 and $220,000.
38. LeFever Development Co.’s 2000 earnings
from persevering with operations earlier than earnings taxes was $280,000. LeFever reported a
before-tax extraordinary acquire of $50,000. All tax gadgets are topic to a 40%
tax charge. In its earnings assertion for 2000, LeFever would present the next
line-item quantities for before-tax internet earnings and earnings tax expense: (2 factors)
a. $198,000 and $112,000.
b. $230,000 and $92,000.
c. $330,000 and $132,000.
d. $198,000 and $79,000.
39. Northridge Printers bought an offset
press on January 1, 1997 at a price of $120,000. The press had an estimated
eight-year life with no residual worth Northridge makes use of straight-line
depreciation. At December 31, 2000, Northridge estimated that the press would
have solely two extra years of remaining life with no residual worth. For 2000,
Northridge would report depreciation expense of: (2 factors)
a. $25,000.
b. $15,000.
c. $20,000.
d. $30,000.
40. Triptic Journey reported income of
$300,000 for its yr ended December 31, 2000. Accounts receivable at December
31, 1999 and 2000 have been $32,000 and $35,500, respectively. Throughout 2000, accounts
totaling $1,500 have been deemed to be uncollectible and have been written off. Utilizing the
direct technique for reporting money flows from working actions, Triptic would
report money collected from prospects of: (2 factors)
a. $300,000.
b. $295,000.
c. $303,000.
d. $302,000.
41. Arrow Printers paid $2,000 curiosity on
short-term notes payable, $10,000 curiosity on long-term bonds, and $6,000 in
dividends on its frequent inventory. Arrow would report money outflows from
actions, as follows: (2 factors)
a. Working, $2,000; financing $16,000.
b. Working, $zero; financing $18,000.
c. Working, $12,000; financing $6,000.
d. Working, $18,000; financing $zero.
42. Parvo Canine Meals Co. reported internet earnings of
$45,000 for the yr ended December 31, 2000. January 1 balances in accounts
receivable and accounts payable have been $23,000 and $26,000 respectively. Yr-end
balances in these accounts have been $22,000 and $28,000, respectively. Assuming
that each one related data has been offered, Parvo’s money flows from
working actions could be: (2 factors)
a. $48,000.
b. $44,000.
c. $46,000.
d. $45,000.
43. Anthrax Beef Processors reported internet
earnings of $216,000 for its yr ended December 31, 2000. Purchases totaled
$152,000. Accounts payable balances at the start and finish of the yr have been
$36,000 and $33,000, respectively. Starting and ending stock balances have been
$44,000 and $46,000, respectively. Assuming that each one related data has
been offered, Anthrax would report working money flows of: (2 factors)
a. $155,000.
b. $221,000.
c. $211,000.
d. $151,000.
44. In Case B, Alpha would report a acquire or
(loss) from disposal in 2000 of: (2 factors)
a. $40,000.
b. $(10,000).
c. $15,000.
d. $65,000.
45. In Case C, Alpha would report a (loss)
from disposal in 2000 of: (2 factors)
a. $(50,000).
b. $(20,000).
c. $(10,000).
d. $zero.
46. What could be Misty’s internet earnings for the
present yr? (2 factors)
a. $148.
b. $168.
c. $112.
d. Not one of the quantities given are appropriate.
47. In Case B, Omega would report a acquire from
disposal in 2000 of: (2 factors)
a. $75,000.
b. $60,000.
c. $100,000.
d. $zero.
48. In Case C, Omega would report a acquire from
disposal in 2000 of: (2 factors)
a. $30,000.
b. $70,000.
c. $100,000.
d. $zero.
49. In Case D, Omega would report a acquire
(loss) from disposal in 2000 of: (2 factors)
a. $30,000.
b. $(40,000).
c. $20,000.
d. $zero.
50. Rallod would report internet money inflows
(outflows) from investing actions within the quantity of: (2 factors)
a. $(four,000).
b. $100.
c. $(three,900).
d. $(1,900).