Test Bank For Intermediate Accounting 15th Edition

Description

Test Bank For Intermediate Accounting 15th Edition

CHAPTER 4

INCOME STATEMENT AND RELATED INFORMATION

IFRS questions are available at the end of this chapter.

TRUE-FALSe—Conceptual

Answer No. Description

T1.Usefulness of the income statement.

F2.Limitations of the income statement.

F3.Earnings management.

T4.Transaction approach of income measurement.

T5.Single-step income statement.

T6.Revenues and gains.

T7.Income from continuing operations.

F8.Multiple-step income statement.

T9.Multiple-step vs. single-step income statement.

F10.Current operating performance approach.

T11.Reporting discontinued operations.

F12.Reporting extraordinary items.

F13.Irregular items.

T14.Intraperiod tax allocation.

T15.Reporting earnings per share.

F16.Computation of earnings per share.

T17.Prior period adjustments.

T18.Retained earnings restrictions.

F19.Comprehensive income definition.

T20.Reporting other comprehensive income.

Multiple Choice—Conceptual

Answer No. Description

c21.Elements of the income statement.

d22.Usefulness of the income statement.

b23.Limitations of the income statement.

d^S24. Use of an income statement.

d^S25. Income statement reporting.

b26.Usefulness of income statement.

b27.Example of managing earnings down.

c28.Example of managing earnings up.

b29.Improving current net income.

a30.Decreasing current net income.

d31.Single-step income statement advantage.

b32.Single-step income statement.

d33.Methods of preparing income statements.

a34.Income statement presentation.

b35.Event with no income statement effect.

c^S36. Event with no income statement effect.