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devryACCT 304 Week 8 Final Exam

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Question;1. Income from continuing operations sometimes includes gains from non-operating activities.;2. Intraperiod tax allocation is the process of associating income tax;effects with the income statement components that create those effects.;3. Material restructuring costs are reported as an element of income from continuing operations.;4. Earnings quality refers to the ability of reported earnings (income) to predict future earnings.;5. Gains, but not losses, from discontinued operations must be separately reported in an income statement.;6. An item must meet the subjective criteria of being either unusual or infrequent to be reported as extraordinary.;7. The definition of what constitutes an extraordinary item should be independent of the operating environment.;8. Income statements prepared according to both U.S. GAAP and;International Accounting Standards require the separate reporting, as an;extraordinary item, of material gains and losses from events that are;both unusual and infrequent.;9. A change in depreciation method is accounted for by retrospectively revising prior years' financial statements.;10. Changes in accounting estimates require disclosure of their;effects, if material, on current year net income and EPS but do not;require restatement of prior years' financial statements. 11. The income effect of a change in reporting entity is shown separately in the income statement in the year of the change.;12. EPS disclosure is required only for income from continuing operations.;13. Comprehensive income reports an expanded version of income to;include four types of gains and losses not included in traditional;income statements.;14. Comprehensive income is the total change in shareholders' equity that occurred during the period.;15. The direct and indirect methods of reporting the statement of;cash flows present different information for investing and financing;activities.;Essay Questions;Listed below are ten terms followed by a list of phrases that;describe or characterize five of the terms. Match each phrase with the;correct term placing the letter designating the best term in the space;provided by the phrase.Terms;A. Change in accounting estimate;B. Income from discontinued operations;C. Income from continuing operations;D. Intraperiod tax allocation;E. Matching principle;F. Operating activities (income statement);G. Prior period adjustment;H. Provision for income tax;I. Taxable income;J. Transitory earnings;16. _____ Also known as income tax expense.;17. _____ From transactions or events that are not likely to occur in the foreseeable future.;18. _____ Associates tax with income statement items.;19. _____ Used as the base for computing taxes currently payable.;20. _____ Made to correct a material error.;Listed below are ten terms followed by a list of phrases that;describe or characterize five of the terms. Match each phrase with the;correct term placing the letter designating the best term in the space;provided by the phrase.Terms;A. Change in accounting estimate;B. Income from discontinued operations;C. Income from continuing operations;D. Intraperiod tax allocation;E. Matching principle;F. Operating activities (income statement);G. Prior period adjustment;H. Provision for income taxes;I. Taxable income;J. Transitory earnings;21. _____ Is directly related to the principal revenue-generating activities;22. _____ Requires note disclosure, if material.23. _____ Expenses are recognized in the same period as the related revenues.;24. _____ Income (loss) from an identifiable component will cease.;25. _____ More useful to analysts in predicting future income than current net income.;Listed below are ten terms followed by a list of phrases that;describe or characterize five of the terms. Match each phrase with the;correct term placing the letter designating the best term in the space;provided by the phrase.Terms;A. Cumulative effect of a change in accounting principle;B. Direct method;C. Discontinued operations;D. Financing activities;E. Gain/loss from early extinguishment of debt;F. Investing activities;G. Held for sale component;H. Multiple-step income statement;I. Non-operating activities (income statement);J. Single-step income statement;26. _____ Not directly related to a firm's principal revenue-generating activities.;27. _____ Likely to be discontinued within a year.;28. _____ Groups all revenues and gains.;29. _____ Related to the acquisition and disposition of long-term assets.;30. _____ Related to the external financing of the company.;Listed below are ten terms followed by a list of phrases that;describe or characterize five of the terms. Match each phrase with the;correct term placing the letter designating the best term in the space;provided by the phrase.Terms;A. Cumulative effect of a change in accounting principle;B. Direct method;C. Discontinued operations;D. Financing activities;E. Gain/loss from early extinguishment of debt;F. Investing activities;G. Held for sale component;H. Multiple-step income statement;I. Non-operating activities (income statement);J. Single-step income statement;31. _____ Difference between book value of debt and payment to retire debt.;32. _____ Reported net of tax immediately after income from continuing operations.;33. _____ No longer included in current income for voluntary changes in accounting principle.;34. _____ Reports intermediate subtotals in arriving at net income.;35. _____ Reports the cash effects of each operating activity directly on the statement.;Listed below are ten terms followed by a list of phrases that;describe or characterize five of the terms. Match each phrase with the;correct term placing the letter designating the best term in the space;provided by the phrase.Terms;A. Change in reporting entity;B. Component of an entity;C. Comprehensive income;D. Earnings quality;E. Earnings per share;F. Extraordinary items;G. Indirect method;H. Non-cash financing and investing activities;I. Operating activities (SCF);J. Restructuring costs;36. _____ Required disclosure for publicly traded corporations.;37. _____ Operations and cash flows can be clearly distinguished.;38. _____ Separately stated component of continuing operations.;39. _____ Calculations work backward from net income to cash flow from operating activities.;40. _____ Ability of reported income to predict future earnings.;Listed below are ten terms followed by a list of phrases that;describe or characterize five of the terms. Match each phrase with the;correct term placing the letter designating the best term in the space;provided by the phrase.Terms;A. Change in reporting entity;B. Component of an entity;C. Comprehensive income;D. Earnings quality;E. Earnings per share;F. Extraordinary items;G. Indirect method;H. Non-cash financing and investing activities;I. Operating activities (SCF);J. Restructuring costs;41. _____ The acquisition of assets by issuing debt or equity securities.;42. _____ Costs incurred often relate to downsizing.;43. _____ Total non-owner change in equity for a reporting period.;44. _____ Unusual, infrequent, and material gains and losses.;45. _____ When grouped together, essentially net income on a cash basis.;Listed below are ten terms followed by a list of phrases that;describe or characterize the terms. Match each phrase with the correct;term placing the letter designating the best term in the space provided;by the phrase.Terms;A. Change in estimate;B. Non-operating income;C. Comprehensive income;D. Earnings quality;E. Earnings per share;F. Extraordinary items;G. Change in accounting principle;H. Multiple-step income statement;I. Discontinued operations;J. Restructuring costs;46. _____ Required disclosure for publicly traded corporations.;47. _____ Component of the entity has been sold or will be sold.;48. _____ Costs generally associated with downsizing.;49. _____ Reports a series of intermediate subtotals.;50. _____ Accounted for prospectively.;51. _____ Tangentially related to normal operations.;52. _____ Accounted for retrospectively by restating prior years' statements.;53. _____ Unusual, infrequent, and material gains and losses.;54. _____ Total non-owner change in equity.;55. _____ Ability of reported income to predict future earnings.;Multiple Choice Questions;56. Intraperiod income tax presentation is primarily a matter of;A. Valuation.;B. Going concern.;C. Periodicity.;D. Allocation.;57. The difference between single-step and multiple-step income statements is primarily an issue of;A. Consistency.;B. Presentation.;C. Measurement.;D. Valuation.;58. Popson Inc. incurred a material loss which was not unusual in;character, but was clearly an infrequent occurrence. This loss should be;reported as;A. An extraordinary loss.;B. A separate line item between income from continuing operations and income from discontinued operations.;C. A separate line item within income from continuing operations.;D. A separate line item in the retained earnings statement.

 

Paper#39203 | Written in 18-Jul-2015

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