As an analyst assessing a company's future profit potential, which of the following would you most likely disregard?

Group of answer choices

Cost of goods sold.

Restructuring charges.

Selling expenses.

Research and development expense.

Under the equity method of accounting for investments

Group of answer choices

dividends received are reported on the income statement as dividend income.

the investment account is reported at cost on the balance sheet.

the investor's share of the investee's net income is reported as equity earnings on the income statement.

All of the above are correct.

Which item would not be classified as an operating expense?

Group of answer choices

Advertising.

Gain on sale of land.

Depreciation.

Salaries.

Which of the following is a reason why it is important for an analyst to read the Commitments and Contingencies note?

Group of answer choices

The note details information on commitments and contingencies that may not appear in the financial statements.

Commitments and contingencies can have a significant impact on a company in the future.

The note describes any pending litigation against the company.

All of the above.

Upon receipt of cash in advance from a customer, a company records revenue on the income statement.

Group of answer choices

True

False

Deferred income taxes arise due to temporary differences between tax reporting rules and financial reporting rules.

Group of answer choices

True

False