Statement of Comprehensive Income

Question 1

Statement of Comprehensive Income also know as the?

Answer 1

Income Statement

Question 2

What is Statement of Comprehensive Income?

Answer 2

A financial statement that gives information on the revenues earned and the expenses incurred by the business for a certain period of time.

Question 3

Is defined as fees earned from providing services and the amounts of merchandise sold.

Answer 3

Revenue

Question 4

If the revenues earned are from a main activity of the business, they are considered?

Answer 4

Operating Revenues.

Question 5

If the revenues come from a secondary activity, they are considered?

Answer 5

Non-Operating revenues

Question 6

Is the reduction in value of an asset as it is used to generate revenue?

Answer 6

Expense

Question 7

What are the two forms of presenting expenses in the SCI?

Answer 7

-Natural form
-Functional form

Question 8

The natural form is also called?

Answer 8

Single-step form

Question 9

Where only two sections are presented in the SCI- the revenue section and the operating expenses section.

Answer 9

Natural Form

Question 10

The Functional form, also called ?

Answer 10

the multiple-step or multi-step form

Question 11

Is normally applicable to businesses with more complex operations, in this form, expenses are grouped according to function - cost of sales, selling expenses, administrative expenses, and other nonoperating expenses?

Answer 11

Functional form or multiple step form

Question 12

A transaction that increases assets and/or decreases liabilities leading to an increase in equity resulting from operations of the business and not from owner’s contribution

Answer 12

Income

Question 13

A transaction that decreases assets and or increases liabilities leading to an decrease in equity resulting from operations of the business and not from distribution to owners.

Answer 13

Expense

Question 14

Incurred in the process or as a result of the primary operations of the business

Answer 14

Operating expenses

Question 15

Incurred in the non-primary operations of the business

Answer 15

Non-operating Expenses

Question 16

Income derived from the other activities of the business

Answer 16

Gains

Question 17

Refers to earnings made by any business that is into rendering services

Answer 17

Service Revenue/Income

Question 18

Earnings made by any business that is into selling goods or merchandise

Answer 18

Sales

Question 19

Interest credited by the bank to the account of the business arising from bank deposits.

Answer 19

Interest income

Question 20

Earnings made by professionals or experts from rendering services to their clients

Answer 20

Professional Fees

Question 21

Contra-sales account used to report the decreases in the seller’s receivable from a customer’s return of merchandise measured by its selling price or from granting the customer an allowance from the amount owed to the seller

Answer 21

Sales Returns and Allowances

Question 22

Contra-sales account used to report the amount of discount taken by customers

Answer 22

Sales Discount

Question 23

Total sales less sales discount and sales returns and allowances

Answer 23

Net Sales

Question 24

This is the direct cost of purchasing the goods that were sold during the financial year

Answer 24

Cost of Sales ( Cost of goods sold)

Question 25

Keeps track of inventory levels on a daily basis and Inventory account is “perpetually” updated for goods purchased and sold

Answer 25

Perpetual Inventory Method

Question 26

Does not update the inventory account for purchases and sales

Answer 26

Periodic Inventory Method

Question 27

Account that is used to report acquisitions of merchandise for sale using the periodic inventory method

Answer 27

Purchases

Question 28

Contra-purchase account that reports the cost of goods returned to suppliers

Answer 28

Purchase returns and allowances

Question 29

Contra-purchase account that reports the amount of discount taken by the company.

Answer 29

Purchase Discount

Question 30

Refers to shipping cost necessary to bring inventory purchased from the seller to the premises of the company

Answer 30

Freight-In

Question 30

Is gross purchases plus Freight-in Less Purchase returns and allowances and purchase discounts

Answer 30

Net Purchases

Question 31

Cost involved in operating a business, other than cost of sales, such as rent, utilities, and salaries.

Answer 31

Operating Expenses

Question 32

Cost associated with the usage of electricity, water, and communication for a particular accounting period

Answer 32

Utilities Expense

Question 33

Costs incurred associated with services rendered normally by permanent and full-time employees who are paid on a regular basis usually monthly

Answer 33

Salaries Expense

Question 34

Costs incurred associated with the services rendered normally by contractual and temporary employees and workers who are paid on an hourly rate or based on output.

Answer 34

Wages Expense

Question 35

Costs incurred to register the business, to acquire the right to operate, and to settle taxes

Answer 35

Taxes and Licenses Expense

Question 36

Refers to the amount of supplies that was used during a particular accounting period.

Answer 36

Supplies Expense

Question 37

Amount of loss resulting from uncollectible accounts receivable

Answer 37

Bad Debts Expense

Question 38

The allocated portion of a property, plant, and equipment asset’s cost that is transferred to an expense account in the current accounting period

Answer 38

Depreciation Expense

Question 39

Groups all revenue together and groups all expenses together (total revenues - total Expenses)

Answer 39

Single-Step Approuch