Question :
141. U.S. GAAP and IFRS require firms to initially report the : 1230395
141. U.S. GAAP and IFRS require firms to initially report the results of most income transactions in the
A. retained earnings bypassing the income statement.
B. income statement instead of bypassing the income statement and reporting the amounts in some other shareholders’ equity account.
C. paid-in-capital bypassing the income statement.
D. retained earnings bypassing the income statement.
E. treasury stock bypassing the income statement.
142. U.S. GAAP and IFRS aid the investors’ analysis process by requiring firms to classify income transactions in particular ways in the financial statements which include
A. Recurring versus nonrecurring.
B. Central versus peripheral.
C. Unrealized versus realized gains and losses from changes in the fair values of assets and liabilities.
D. Adjustments for errors and changes in accounting principles and accounting estimates.
E. all of the above
143. U.S. GAAP and IFRS distinguish between revenues and expenses on the one hand and gains and losses on the other. Which of the following is/are true?
A. Revenues and expenses result from the recurring, primary operating activities of a business.
B. Income items include the ordinary, recurring operating activities of the firm.
C. Gains and losses result from either peripheral activities or nonrecurring activities.
D. The reporting of revenues and expenses are at gross amounts, and firms report gains and losses at net amounts.
E. all of the above
144. U.S. GAAP and IFRS distinguish between revenues and expenses on the one hand and gains and losses on the other. Which of the following is/are not true?
A. Revenues and expenses result from the recurring, primary operating activities of a business.
B. Income items include the ordinary, recurring operating activities of the firm.
C. Gains and losses result from either peripheral activities or nonrecurring activities.
D. The reporting of revenues and expenses are at gross amounts, and firms report gains and losses at net amounts.
E. Gains and losses result from the recurring, primary operating activities of a business.
145. Income statements contain which of the following sections or categories, depending on the nature of a firm’s earnings for the period?
A. income from continuing operations
B. income, gains, and losses from discontinued operations
C. extraordinary gains and losses
D. all of the above
E. none of the above
146. Income statements prepared under U.S. GAAP contain which of the following sections or categories, depending on the nature of a firm’s earnings for the period?
A. income from continuing operations
B. income, gains, and losses from discontinued operations
C. extraordinary gains and losses
D. all of the above
E. none of the above
147. Income statements prepared under IFRS contain which of the following sections or categories, depending on the nature of a firm’s earnings for the period?
A. income from continuing operations
B. income, gains, and losses from discontinued operations
C. separate disclosure of material income items
D. all of the above
E. none of the above
148. Which section includes income derived from a firm’s primary business activities as well as from activities peripherally related to operations. The firm expects these sources of earnings to continue.
A. income from continuing operations
B. income, gains, and losses from discontinued operations
C. extraordinary gains and losses
D. retained earnings
E. paid-in-capital
149. Revenues from marketable securities and investments in securities, interest expense on borrowings, and gains and losses from peripheral activities appear as _____. The firm expects these sources of earnings to continue.
A. income from continuing operations
B. income, gains, and losses from discontinued operations
C. extraordinary gains and losses
D. retained earnings
E. paid-in-capital
150. Firms almost always report asset impairment charges or restructuring charges in _____.
A. income from continuing operations
B. income, gains, and losses from discontinued operations
C. extraordinary gains and losses
D. retained earnings
E. paid-in-capital
