Intermediate Accounting I - Exam 2 UPDATED Exam Questions and CORRECT Answers ONLY
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Course
Intermediate Accounting
Institution
Intermediate Accounting
Intermediate Accounting I - Exam 2
UPDATED Exam Questions and
CORRECT Answers ONLY
Which of the following would be more likely in multiple step income statement:
1. Total Expenses
2. Total Revenues & Gains
3. Operating Income - Correct Answer- Operating Income is most likely found in a multi...
Intermediate Accounting I - Exam 2
UPDATED Exam Questions and
CORRECT Answers ONLY
Which of the following would be more likely in multiple step income statement:
1. Total Expenses
2. Total Revenues & Gains
3. Operating Income - Correct Answer- Operating Income is most likely found in a multiple
step income statement
Item typically included in the income from continuing operations section of the income
statement is:
1. Discontinued operations
2. Restructuring costs
3. Prior period adjustment - Correct Answer- Restructuring costs are typically included in
income from continuing operations
The application of intraperiod income taxes requires that income taxes be apportioned to each
of the following items except:
1. Income from continuing operations
2. Operating income
3. Discontinued operations - Correct Answer- Operating Income would not be in this list
For a manufacturing company, each of the following items would be considered non
operating income for income statement purposes except:
1. Income from investments
2. Cost of Goods Sold
3. Interest expense
4. Gain on sale of investments - Correct Answer- Cost of Goods Sold would not be
considered nonoperating income
, Earnings per share should be reported for eaxch of the following income statement captions
except:
1. Income from continuing operations
2. Discontinued operations
3. Operating income
4. Net income - Correct Answer- Operating income is not included in earnings per share
Under GAAP, comparative financial statements are:
1. Required for at least the current and the prior year
2. Neither required nor recommended
3. Recommneded for at least the current and the prior year
4. Required for at least the current and the prior 2 years - Correct Answer- Recommended for
at least the current and the prior year
The effect of a material transaction that is infrequent in occurrence but not unusual in nature
should be presented separately as a componnent of income from continuing operatinos when
the transaction results in a - Correct Answer- To be extraordinary it must be both, since this is
just one, should be put under income from continuing operations
Major distinction between multiple step and single step income statemetn is the separation of:
1. Income tax expense and administrative expenses
2. COGS expense and admn exp.
3. Selling expenses
4. Operating and nonoperating data - Correct Answer- Operating and nonoperating data,
allows to see gross profit or loss
One of the primary benefits of the multiple-step income statement over the single-step
income statement ist aht the multiple-step income statement:
1. Recognizes no distinciton among types of costs or expenses
2. Shows gross margin and recognizes different types of costs and expenses
3. Always shows last year's figures in comparison with the current year
4. Discrimination between admin & selling exp. - Correct Answer- Shows gross margin and
recognizes different types of costs and expenses
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