7. Corporation income tax expense is

a. not reported in a separate section of a corporate income statement.

b. not usually accrued because it is not known what the exact liability will be until the tax return is filed.

c. reported similarly for corporations and partnerships.

d. usually accrued in the adjusting entry process.

e. none of the above are correct.

8. A statement of comprehensive income is presented in

a. a single-statement format only.

b. a two-statement format only.

c. an operating format.

d. either a one- or two-statement format.

e. none of the above are correct.

10. Previously issued financial statements with errors are required to be restated under

a. GAAP only.

b. IFRS only.

c. Both GAAP and IFRS.

d. Neither GAAP or IFRS.

e. none of the above are correct.

11. The retained earnings statement

a. is the owners' equity statement for a corporation.

b. will not reflect net losses.

c. will show an addition to the beginning retained earnings balance for an understatement of net income in a prior year.

d. will, in some cases, fail to reconcile the beginning and ending retained earnings balances.