AIS 301 Ch 4-7

Question 1

Intraperiod tax allocation

Answer 1

process of relating the income tax
effect of an unusual item to
that item when it appears on the income statement.

Question 2

extraordinary gain or loss

Answer 2

material items that are unusual in nature and occur infrequently.

Question 3

Comprehensive income

Answer 3

includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Question 4

Pure rate of interest

Answer 4

amount at lender would charge if there were no

possibilities of default and no expectation of inflation.

Question 5

Transfer Without Recourse

Answer 5

When receivables are sold and the purchaser assumes the risk of collectibility and absorbs any credit losses.

Question 6

Transfer With Recourse

Answer 6

When receivables are sold and the seller guarantees payment to the purchaser in the event the debtor fails to pay