What is the correct presentation of the income statement?

Revenues - expenses = Net income - losses + gains

Revenues - expenses + gains - losses = Net Income

Revenues + gains - losses - expenses = Net Income

Revenues - losses - expenses + gains = Net Income

Which statement about negative goodwill is true?

Negative goodwill should be recorded as a direct credit to retained earnings.

Negative goodwill is not recorded.

Negative goodwill should be allocated proportionately to reduce the cost of all assets acquired except long-term investments and other financial assets on the basis of their relative market values.

Negative goodwill should be allocated proportionately to reduce the cost of all assets acquired on the basis of their relative market values.

An inconsistency in accounting theory can occur because

internally developed goodwill is amortized, while purchased goodwill is maintained but tested for impairment.

internally developed goodwill is capitalized, while purchased goodwill is expensed.

internally developed goodwill is expensed, while purchased goodwill is capitalized.

purchased goodwill is amortized, while internally developed goodwill is maintained but tested for impairment.

The determination of impairment losses differs under IFRS versus GAAP in that

only GAAP permits a value-in-use estimate

only IFRS permits a value-in-use estimate

only IFRS employs a disposal approach as a measure of fair value

only GAAP compares the fair value to cost