F1.M2 Flashcards

1
Q

How are revenue and expenses reported

A

At gross amounts

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2
Q

How are gains and losses reported

A

at net amounts (proceeds less net book value)
Note: not net of income taxes

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3
Q

what is included in inventory costs?

A

purchase price and freight in

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4
Q

what is included in selling costs

A

freight out, salaries and commissions, advertising

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5
Q

what is included in general and administrative

A

officers’ salaries, accounting and legal, insurance

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6
Q

what is included in nonoperating

A

auxillary activities, interest xpense

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7
Q

How should unusual and infrequent occurrences be presented on income statement?

A

Separately as a component of continued operations when transaction results in a gain or loss

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8
Q

In a single step income statement, do you include the amounts for discontinued operations?

A

No

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9
Q

Can discount on bonds payable be a current liability?

A

Yes if bonds payable amount is being presented as a current liability the the discount is also a current liability

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10
Q

Is a deposit from a customer a current asset for a bank?

A

No it is a liability

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