1 The major elements of the income statement are 1 pts nonoperating section, discontinued operations, operating section, extraordinary items, and cumulative effect losses, expenses, revenues, and gains selling expenses, revenues, general expenses, and cost of goods sold none of these Question 2 Which of the following is not a way that components of other comprehensive income can be displayed? Second income statement Combined statement of comprehensive income Combined statement of retained earnings All of these are acceptable . Question 3 1 pts 1 pts Which of the following is required when a portion of inventories has been pledged as security on a loan? The fact must be disclosed but the amount of current assets should remain the same. The value of the portion pledged must be added to the debt. The cost of the pledged inventories must be transferred from current assets to noncurrent assets. An equal amount of retained earnings must be appropriated. Question 4 What does the balance sheet reveal about a company? Fair value of a company at a particular date Results of the company's income-producing activities Financial position of a company at a particular date Cash inflows and outflows of a company for the accounting period Question 5 should be reported at its gross amount on the face of the income statement. Prior period adjustment Cumulative effect of a change in an accounting principle Extraordinary loss Unusual gains and losses 1 pts 1 pts Question 6 The current assets section of the balance sheet should include machinery patents O goodwill short-term investments Question 7 Which of the following is a current asset? Trade installment receivables normally collectible in 18 months Cash designated for purchasing tangible fixed assets Investment in equity securities for controlling the issuing company The cash surrender value of a life insurance policy of which the company is the beneficiary Question 8 Receivables are valued based on their lower-of-cost-or-market value estimated amount collectible fair value historical cost Question 9 must be disclosed on the face of the income statement. Earnings per share (EPS) for income from continuing operations The effect on Earnings per share (EPS) from unusual items Earnings per share (EPS) for gross profit Earnings per share (EPS) for income before taxes Question 10 Which of the following is not a limitation of the income statement? The accounting methods employed affect income numbers. Income measurement requires judgment. Only actual amounts are reported in determining net income. Items that cannot be measured reliably should not be reported. 1 pts 1 pts 1 pts 1 pts 1 pts