For Mortenson Company, the following information is available: Cost of goods sold Dividend revenue 20. $130,000 5,000 12,000 46,000 200,000 Operating expenses revenu In Mortenson's multiple-step income statement, gross A) B) should be reported at $75,000 should not be reported should be reported at $17,000. should be reported at $70,000 D 21. A change in accounting principle requires that the cumulative effect of the change for prior periods be shown as an adjustment to: A) stockholders' equity of the period in which the change occurred. B) beginning retained earnings of the earliest period presented. C) net income of the period in which the change occurred. D) comprehensive income for the earliest period presented. 22. The income statement reveals AD net earnings (net income) of a firm for a period of time. C) resources and equities of a firm at a point in time D) resources and equities of a firm for a period of time. 23. Land held for speculation is reported in the property, plant, and equipment section of the balance sheet. A) True B) False 24. The double-entry accounting system means A) The dual effect of each transaction is recorded with a debit and a credit. B) Each transaction is recorded with two journal entries. C) Each item is recorded in a journal entry, then in a general ledger account. D) None of these answer choices are correct. 25. For Randolph Company, the following information is available: $560,000 190,000 210,000 Capitalized leases Copyrights Long-term receivables In Randolph's balance sheet, intangible assets should be reported at A) $750,000. B) $780,000. C) $220,000. D) $190,000. For Mortenson Company, the following information is available: Cost of goods sold Dividend revenue 20. $130,000 5,000 12,000 46,000 200,000 Operating expenses revenu In Mortenson's multiple-step income statement, gross A) B) should be reported at $75,000 should not be reported should be reported at $17,000. should be reported at $70,000 D 21. A change in accounting principle requires that the cumulative effect of the change for prior periods be shown as an adjustment to: A) stockholders' equity of the period in which the change occurred. B) beginning retained earnings of the earliest period presented. C) net income of the period in which the change occurred. D) comprehensive income for the earliest period presented. 22. The income statement reveals AD net earnings (net income) of a firm for a period of time. C) resources and equities of a firm at a point in time D) resources and equities of a firm for a period of time. 23. Land held for speculation is reported in the property, plant, and equipment section of the balance sheet. A) True B) False 24. The double-entry accounting system means A) The dual effect of each transaction is recorded with a debit and a credit. B) Each transaction is recorded with two journal entries. C) Each item is recorded in a journal entry, then in a general ledger account. D) None of these answer choices are correct. 25. For Randolph Company, the following information is available: $560,000 190,000 210,000 Capitalized leases Copyrights Long-term receivables In Randolph's balance sheet, intangible assets should be reported at A) $750,000. B) $780,000. C) $220,000. D) $190,000
