Question 1

Which of the following would be included in operating income?

Accepted Answer

A)  interest income for a manufacturing firm 
B)  rent income for a leasing subsidiary 
C)  gain from sale of marketable securities for a retailer 
D)  dividend income for a service firm 
E)  none of the answers are correct 
A)  interest income for a manufacturing firm 
B)  rent income for a leasing subsidiary 
C)  gain from sale of marketable securities for a retailer 
D)  dividend income for a service firm 
E)  none of the answers are correct

Question 2

With a stock dividend, total market value considering all outstanding shares should decline.

Accepted Answer

A) True 
 B)False

Question 3

The stockholders' equity of Anamanda Company at September 30, 2010, is presented below:   On October 1, 2010, the Board of Directors of Anamanda declared a 10% stock dividend to be distributed on November 10.The market price of the common stock was $15 on October 1 and $17 on November 10.What is the amount of the charge to retained earnings as a result of the declaration and distribution of this stock dividend?

Accepted Answer

A)  $0 
B)  $200,000 
C)  $300,000 
D)  $340,000 
E)  $750,000 
A)  $0 
B)  $200,000 
C)  $300,000 
D)  $340,000 
E)  $750,000

Question 4

Other income and other expense are categories under which secondary activities of the firm not directly related to the operations are classified.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would be classified as an extraordinary item on the income statement?

Accepted Answer

A)  loss from a strike 
B)  correction of an error related to a prior period 
C)  write-off of obsolete inventory 
D)  loss on disposal of a segment of business 
E)  loss from prohibition of a product 
A)  loss from a strike 
B)  correction of an error related to a prior period 
C)  write-off of obsolete inventory 
D)  loss on disposal of a segment of business 
E)  loss from prohibition of a product

Question 6

Which of the following will be disclosed in the reconciliation of retained earnings?

Accepted Answer

A)  adjustment for an error of a prior period 
B)  net income 
C)  net loss 
D)  dividends 
E)  all of the answers are correct 
A)  adjustment for an error of a prior period 
B)  net income 
C)  net loss 
D)  dividends 
E)  all of the answers are correct

Which of the following would be included in operating income?

With a stock dividend, total market value considering all outstanding shares should decline.

Other income and other expense are categories under which secondary activities of the firm not directly related to the operations are classified.

Which of the following would be classified as an extraordinary item on the income statement?

Which of the following will be disclosed in the reconciliation of retained earnings?

Introduction to Financial Reporting

Introduction to Financial Statements and Other Financial Reporting Topics

Balance Sheet

Basics of Analysis

Liquidity of Short-Term Assets; Related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, Utilities, Oil and Gas, Transportation, Insurance, Real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters

Exam 4: Income Statement

Which of the following would be included in operating income?

With a stock dividend, total market value considering all outstanding shares should decline.

Other income and other expense are categories under which secondary activities of the firm not directly related to the operations are classified.

Which of the following would be classified as an extraordinary item on the income statement?

Which of the following will be disclosed in the reconciliation of retained earnings?

Introduction to Financial Reporting

Introduction to Financial Statements and Other Financial Reporting Topics

Balance Sheet

Basics of Analysis

Liquidity of Short-Term Assets; Related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, Utilities, Oil and Gas, Transportation, Insurance, Real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters