Midterm Study IS Flashcards
The single step income statement emphasizes…
total revenues and total expenses
in calculating earnings per share, companies deduct preferred dividends from net income if
they are declared
cost of good sold on a single step income statement
after net sales, included in total expenses
income from continuing operations: $280,000
income from discounted operations: $60,000
all tax items are subject to a 20% tax rate. the income statement would report a net income of
$272,000
gross profit formula
sales revenue - cost of goods sold
sales returns and allowances are always included in total revenues on both the multiple step and single step income statement
true
discontinued operations loss/gain is included in finding the tax expense reported on the income statement
false
earnings per share formula
(net income - preferred dividends declared) / weighted average of common stock outstanding
when a company discontinues an operation and disposes of the discontinued operation (component), the transaction would be included in the income statement as a gain or loss on the disposal reported as
an amount after continuing operations
other comprehensive income
any unrealized gain or loss on an AFS debt securities
an occurrence which most likely would not affect 2025 net income (assuming that all amounts involved are material) is the
collection in 2025 of a receivable from a customer whose account was written off in 2024 by a charge to the allowance account
a company is not required to report a per share amount on the date of the income statement for…
prior period adjustment
which of the following earnings per share figures must be disclosed on the face of the income statement: the effect on EPS from unusual items, EPS for income from continuing operations
EPS from continuing operations
how to discover amount reported for other expenses and losses
gross profit - selling and administrative expenses - income from continuing operations before income tax
freight out affects net sales
false
