TBS 1.2 Flashcards
Realized and unrealized gains and losses for trading securities are reported where?
Income from continuing operations
A restructuring charge is included in income from continuing operations or income other than IFCO?
Income from continuing operations
The effects of changes in laws are recognized where?
Income from continuing operations
Unrealized gains and losses on AFS debt securities are reported where?
Other comprehensive income
Dividends received on investments in AFS debt securities are reported where?
Income from continuing operations
Dividends received on an equity method investment are reported where?
No impact on income. Debit to cash and credit to the equity investment account.
An increase in unrealized pension cost is reported where?
Other comprehensive income
What cash flow category is a monthly mortgage payment?
Operating and Financing.
Principal is financing, Interest is operating
What cash flow category is dividends received on investments?
Operating cash flow
What cash flow category is a annual lease payment?
Operating and Financing.
Principal is financing, Interest is operating
What cash flow category would a payment to fund company pension plan be?
Operating cash flow
Return on total assets =
earnings before interest + tax / average total assets
Return on equity =
net income / average owners equity
Dividend payout ratio =
common dividends / net income
Profit margin on sales =
net income / sales
