Income Statement and Balance Sheet Flashcards
is redesigning packaging to make your product more environmentally friendly could be counted as a Charitable Donation?
No
Do you add gain on debt extinguishment in operating income if it is usual and recurring even?
YES
Is freight out a selling expense?
Yes
Is advertising out a selling expense?
Yes
Are Sales and commission a selling expense?
Yes
Do you add the rent for office space if it is occupied by the sales department?
Yes
How do you calculate the revenue in a single step Income statement?
Add all revenues and gains and get the total revenue amount except results from discontinued operations.
Does net income include all the gains and losses in the multi-step income statement?
Net income is a bottom-line amount after all has been considered on the income statement, in both single or multi-step income statements.
It is income from continuing operations.
What is income from the continuing operation?
It has two components operating (R, E) and non-operating income (G, L)
Interest Expense is a
Separate line item, neither G&A nor Selling expense. if not a bank it is NON-OPERATING. Interest revenue is a separate line item in the Gain section.
Advertising is a?
Selling Expense
Salaries expense is a?
Part G&A and part Selling Expense
Office space rent is a
Part G&A and part Selling Expense
Freight out expense is?
Selling Expense
Commission expense is a?
Selling Expense
Depreciation expense is a?
Separate line item, neither G&A nor Selling expense
Income tax expense is a?
Separate line item, neither G&A nor Selling expense
Insurance expense is a?
General and administrative expense
Bond Payable due next year (12 months) is?
Current Liability
Deferred Income Tax Payable is?
Non-Current Liability
Dividend Payable expected to be paid in 2 months is?
Current Liability
Income tax payable for the current year is?
Current Liability
Discount on Bond Payable current?
It is a contra liability account and should be deducted not added.
Unearned revenue is a?
Liability
