F1.M2 Flashcards
How are revenue and expenses reported
At gross amounts
How are gains and losses reported
at net amounts (proceeds less net book value)
Note: not net of income taxes
what is included in inventory costs?
purchase price and freight in
what is included in selling costs
freight out, salaries and commissions, advertising
what is included in general and administrative
officers’ salaries, accounting and legal, insurance
what is included in nonoperating
auxillary activities, interest xpense
How should unusual and infrequent occurrences be presented on income statement?
Separately as a component of continued operations when transaction results in a gain or loss
In a single step income statement, do you include the amounts for discontinued operations?
No
Can discount on bonds payable be a current liability?
Yes if bonds payable amount is being presented as a current liability the the discount is also a current liability
Is a deposit from a customer a current asset for a bank?
No it is a liability