FAR13

Question 1

net income=

Answer 1

net income= continuing operations + discontinued operations,
but excludes OCI

Question 2

single-statement will include what accounting?
two-statement will include what accounting?
1. total for revenues and expense
2. earnings before interest and taxes
3. unrealized holding losses on AFS debt securities, net of tax
4. foreign currency measurement items, gross(before tax)

Answer 2

single-statement: total for revenues and expenses, earnings before income and taxes
two-statement: displaying comprehensive income will begin with net income, and then will most likely show each component of OCI on an after-tax basis.

Question 3

copy right should be recorded as an intangible asset or royalty expense?

Answer 3

intangible asset

Question 4

shipping costs incurred by a consignor on transfer of goods to a consignee should be considered as:
1. expense to consignor
2. inventory cost to the consignor

Answer 4

[2]
the consignor still holds the title to the goods and they are a party of its inventory until they are sold by the consignee at which time they are expense to cost of good sold of the consignor.