Question
Please Answer any of the questions. Thank you. QUESTION 5 The operating activities section of the cash flows statements starts with net income: A. When
Please Answer any of the questions. Thank you.
QUESTION 5
- The operating activities section of the cash flows statements starts with net income:
A. | When showing the direct method. | |
B. | Under either method. | |
C. | When showing the indirect method. | |
D. | None of the above is correct. |
QUESTION 4
- Calstone, Inc. prepares an annual combined statement of income and comprehensive income. The appropriate reporting treatment for "The company wrote off $1,000,000 of obsolete inventory." will be:
A. | As a component of operating income. | |
B. | As a non-operating income item (other income or expense). | |
C. | As a separately reported item. | |
D. | As an item of other comprehensive income. | |
E. | As an adjustment to retained earnings. |
QUESTION 8
- Calstone, Inc. prepares an annual combined statement of income and comprehensive income. The appropriate reporting treatment for "In 2014, a supply warehouse with an expected useful life of 7 years was expensed in error." will be:
A. | As a component of operating income. | |
B. | As a non-operating income item (other income or expense). | |
C. | As a separately reported item. | |
D. | As an item of other comprehensive income. | |
E. | As an adjustment to retained earnings. |
QUESTION 11
- Calstone, Inc. prepares an annual combined statement of income and comprehensive income. The appropriate reporting treatment for "Interest expense of $500,000 was recorded." will be:
A. | As a component of operating income. | |
B. | As a non-operating of operating income.
| |
C. | As a separately reported item. | |
D. | As an item of other comprehensive income. | |
E. | As an adjustment to retained earnings. |
QUESTION 22
- Calstone, Inc. prepares an annual combined statement of income and comprehensive income. The appropriate reporting treatment for "Restructuring costs were incurred." will be:
A. | As a component of operating income. | |
B. | As a non-operating income item (other income or expense). | |
C. | As a separately reported item. | |
D. | As an item of other comprehensive income. | |
E. | As an adjustment to retained earnings. |
QUESTION 23
- Calstone, Inc. prepares an annual combined statement of income and comprehensive income. The appropriate reporting treatment for "A gain from the sale of equipment was recognized" will be:
A. | As a component of operating income. | |
B. | As a non-operating income item (other income or expense).
| |
C. | As a separately reported item. | |
D. | As an item of other comprehensive income. | |
E. | As an adjustment to retained earnings. |
QUESTION 13
- Orca Co. decided to change from the FIFO method for inventory to the weighted-average method. The effect of this accounting change should be reported as:
A. | a prior period adjustment. | |
B. | restatement of the prior year's financial statement. | |
C. | a component of other comprehensive income. | |
D. | none of thesethe effect is recorded prospectively. |
QUESTION 25
- Calstone, Inc. prepares an annual combined statement of income and comprehensive income. The appropriate reporting treatment for "A flood destroyed a warehouse that had a book value of $1,600,000." will be:
A. | As a component of operating income. | |
B. | As a non-operating income item (other income or expense).
| |
C. | As a separately reported item. | |
D. | As an item of other comprehensive income. | |
E. | As an adjustment to retained earnings. |
QUESTION 34
- Calstone, Inc. prepares an annual combined statement of income and comprehensive income. The appropriate reporting treatment for "Losses from foreign currency translation were recognized" will be:
A. | As a component of operating income. | |
B. | As a non-operating income item (other income or expense). | |
C. | As a separately reported item. | |
D. | As an item of other comprehensive income. | |
E. | As an adjustment to retained earnings. |
QUESTION 3
- Calstone, Inc. prepares an annual combined statement of income and comprehensive income. The appropriate reporting treatment for "Unrealized gains on investments accounted for as securities available for sale were recorded." will be:
A. | As a component of operating income. | |
B. | As a non-operating income item (other income or expense).
| |
C. | As a separately reported item. | |
D. | As an item of other comprehensive income. | |
E. | As an adjustment to retained earnings. |
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