020 Income Stmt 2

Question 1

How are expenses classified under International Financial Reporting Standards (IFRS)?

Answer 1

They are classified by business function or nature of the expense.

Question 2

Are extraordinary items allowed in International Financial Reporting Standards (IFRS)?

Answer 2

No, extraordinary items are not allowed.

Question 3

Does International Financial Reporting Standards (IFRS) have a required minimum list of items to be reported on the income statement?

Answer 3

Yes, it has a minimum list of items.

Question 4

What are the forms of the statement of comprehensive income?

Answer 4

Single statement and two statements.

Question 5

What is comprehensive income?

Answer 5

Net income + other comprehensive income items.

Question 6

Is a separate statement of other comprehensive income one of the formats permitted under International Financial Reporting Standards (IFRS)?

Answer 6

Yes, this is one of the formats permitted under IFRS.

Question 7

What is operating margin?

Answer 7

The excess of operating revenues over operating expenses.

Question 8

What does the multiple-step income statement present?

Answer 8

Includes multiple subtotals of revenues, expenses, gains, and losses. (Sales - Cost of Goods Sold = Gross profit; Gross profit - operating expenses = income from operations; Income from operations + or ? other income / expenses= Income B/F Taxes; IBT ? taxes = Net Income.)

Question 9

What does the single-step income statement present?

Answer 9

Total revenues and gains less total expenses and losses.

Question 10

What two formats are accepted under International Financial Reporting Standards (IFRS) for Income Statement presentation?

Answer 10

Single-step and multiple-step income statements.