Quiz
Top of Form
Note: Note: It is recommended that you save your response as you complete each question.
If this quiz becomes unresponsive, you can close the browser and re-enter the quiz to correct this issue.
Any unsaved answers will be lost.
Question 1 (1 point) The single-step income statement emphasizes
Question 1 options:
the gross profit and income from operations.
total revenues and total expenses.
extraordinary items and discontinued operations more than these are emphasized in the multiple-step income statement
the various components of income from continuing operations
Save
Question 2 (1 point) Comprehensive income does not include:
Question 2 options:
increases in equity resulting from investments by owners.
dividends paid to shareholders.
adjustments to previous years’ earnings due to accounting policy changes.
All of the above (none of the above items are included in comprehensive income).
Save
Question 3 (1 point) Investors and creditors can use the information in the income statement to:
Question 3 options:
evaluate the past performance of the enterprise.
provide a basis for predicting future performance.
help assess the risk or uncertainty of achieving future cash flows.
All of the above (investors and creditors can use the income statement for all of the above reasons)
Save
Question 4 (1 point) All of the following affect the quality of earnings except:
Question 4 options:
lack of bias in the information.
sustainability of the earnings.
transparency and understandability of the information.
market price of shares.
Save
Question 5 (1 point) Accounting standards require separate presentation of certain items in the income statement. These include all of the following except:
Question 5 options:
revenues
salaries expense
interest costs
income taxes
Save
Question 6 (1 point) A separation of operating and non-operating activities of a company exists in:
Question 6 options:
both a multiple-step and a single-step income statement.
a multiple-step but not a single-step income statement.
a single-step but not a multiple-step income statement.
neither a multiple-step nor a single-step income statement.
Save
Question 7 (1 point) Under current standards, income measurement follows
Question 7 options:
a current operating performance approach.
a separate entity approach.
an all-inclusive approach.
a comprehensive component approach.
Save
Question 8 (1 point) In order to qualify for separate presentation on the income statement, the discontinued business must be a component of an entity. Under ASPE, a component can be any of the following except:
Question 8 options:
an operating segment.
an asset group.
a subsidiary.
a consolidated entity.
Save
Question 9 (1 point) Earnings per share is calculated as net income:
Question 9 options:
divided by the weighted average number of common shares outstanding.
minus preferred dividends divided by the weighted average number of common shares outstanding.
divided by the ending number of common shares outstanding.
minus preferred dividends divided by the ending number of common shares outstanding.
Save
Question 10 (1 point) In the case where there was a formal plan of disposal, the gain or loss on disposal of assets held for sale related
