Question :
131. Which of the following should be reported net of the : 1239377
131. Which of the following should be reported net of the related income tax effect on the income statement? A. sale of an inventory item at a lossB. loss due to sale of fixed assetsC. loss due to a discontinued operations of the businessD. sale of a temporary investment at a loss
132. Which of the following would appear as an extraordinary item on the income statement? A. loss resulting from the sale of fixed assetsB. gain resulting from the disposal of a segment of the businessC. loss from land condemned for public useD. liquidating dividend
133. A loss on disposal of a segment would be reported in the income statement as a(n) A. administrative expenseB. other expenseC. deduction from income from continuing operationsD. selling expense
134. An extraordinary item results from A. a segment of the business being sold.B. corporate income tax being paid.C. a change from one accounting method to another acceptable accounting method.D. a transaction or event that is unusual and occurs infrequently.
135. Which of the following is considered an unusual item affecting the prior period’s income statement? A. Change in accounting principlesB. Fixed asset impairmentsC. Extraordinary itemD. Discontinued operations
136. Which of the following should be classified as an extraordinary item on the income statement? A. Gain on a sale of a long term investment.B. Loss due to discontinued operations.C. Restructuring charges.D. Loss resulting from an infrequent natural disaster.
137. A loss due to a discontinued operation should be reported in the income statement A. above income from continuing operations.B. without related tax effect.C. below income from continuing operations.D. as an operating expense.
138. When a company changes from one acceptable accounting method to another, the change is reported A. in the statement of retained earnings, as a correction to the beginning balance.B. in the income statement, below income from continuing operations.C. in the income statement, above income from continuing operationsD. through a retroactive restatement of prior period earnings.
139. Which of the following items should be classified as an extraordinary item on a corporate income statement? A. gain on the retirement of a bond payableB. loss from land condemned for public useC. loss due to an discontinued operationD. selling treasury stock for more than the company paid for it
140. Which of the following items appear on the corporate income statement before income from continuing operations? A. cumulative effect of a change in accounting principleB. income tax expenseC. extraordinary gainD. loss on discontinued operations
141. A company reports the following:
Net income
$150,000
Preferred dividends
$ 10,000
Shares of common stock outstanding
20,000
Market price per share of common stock
$35.00
Determine the company’s earnings per share on common stock. A. $7.50B. $7.00C. $8.00D. $35.00
142. Income statement information for Lucy Company is provided below:
Sales
$175,000
Cost of goods sold
105,000
Gross profit
$ 70,000
Using vertical analysis of the income statement for Lucy Company, determine the gross profit margin. A. 100%B. 70%C. 40%D. 60%
