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ACCT 304 Week 8 Final Exam

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Question;Questions;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#45509 | Written in 18-Jul-2015

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