F1 Income Stmt Flashcards
How change in demo cost is reported as cumulative effect ?
Demo cost principle inseparable from estimate prospectively no cumulative effect
Gain or loss on discontinued operation calculation ?
Gain or loss netted in current year
Change in principle inseparable from estimate how reported ?
As a component of income from continuing operations
How extraordinary loss calculated under GAAP ?
Net of tax income statement idea
For two separate transactions gain on loss extraordinary item net it or not ?
Not always if different bonds bought or sold
If not extraordinary where to report ?
Component of income from continuing operations
What is advertising classified as :
Selling expense
Where interest reported in income statement ?
Separate line item
General and admin expenses
Accounting and legal fee
Officers salaries
Insurance
Segment discontinued operation loss should not exclude
Operating losses from date of decision to dispose segment was made until end of year
Loss from discontinued operation calculation
Impairment loss +operating loss net of tax
Fixed asset gain joe to report
Net concept show total gain as part of continuing operations NOT net of tax
How extraordinary loss on first quarter reported?
Entirely in the quarter it occurs
Journal entry for correction depreciation which was expensed?
Dr. Retained earnings ( net of tax)
Cr. accumulated depreciation
