IS and BS (F1:M2) Flashcards
how are items that are unusual or infrequent (or both) reported?
as a separate component of income from continuing operations
what determines if an asset is a current asset?
within one year
what expenses are considered selling expenses?
freight out, advertising, sales salaries and commissions, sales office space (rent)
what expenses are considered general & administrative expenses?
legal and audit fees, rent for non-sales office space, insurance, officers salaries
what makes up COGS?
freight in, purchase price of goods
what is the disposal on a component of a business considered?
discontinued operation
how is a loss on abandonment of equipment treated?
like a sale
what accounts fall under current assets?
cash trading securities, at FV AR, net of allowance NR inventory prepaid exp
what accounts fall under other assets?
pension and other post-retirement benefit assets
deferred income tax asset
what accounts fall under current liabilities?
current portion of LT debt AP NP interest payable salaries payable unearned rev
what accounts fall under LT liabilities?
bonds payable
deferred income tax liability
pension and other post-retirement benefit liabilities
what accounts fall under stockholders’ equity?
capital stock (preferred; common) PIC in excess of par RE acc OCI treasury stock (at cost)
list some operating expenses
salaries, rent, insurance, depreciation
are interest revenue and expense included in income from operations?
no, they are considered other revenues and expenses
