Income Statement 2 Flashcards
What is operating margin?
The excess of operating revenues over operating expenses.
What does the single-step income statement present?
Total revenues and gains less total expenses and losses.
What two formats are accepted under International Financial Reporting Standards (IFRS) for Income Statement presentation?
Single-step and multiple-step income statements.
How are expenses classified under International Financial Reporting Standards (IFRS)?
They are classified by business function or nature of the expense.
What are the forms of the statement of comprehensive income?
Single statement and two statements.
Does International Financial Reporting Standards (IFRS) have a required minimum list of items to be reported on the income statement?
Yes, it has a minimum list of items.
Are extraordinary items allowed in International Financial Reporting Standards (IFRS)?
No, extraordinary items are not allowed.
What is comprehensive income?
Net income + other comprehensive income items.
Is a separate statement of other comprehensive income one of the formats permitted under International Financial Reporting Standards (IFRS)?
Yes, this is one of the formats permitted under IFRS.
What does the multiple-step income statement present?
Includes multiple subtotals of revenues, expenses, gains, and losses. (Sales - Cost of Goods Sold = Gross profit; Gross profit - operating expenses = income from operations; Income from operations etc.)
