(TCO 5) The difference between single-step and multiple-step
income statements is primarily an issue of
consistency.
presentation.
measurement.
valuation.
Question 2. Question
:
(TCO 5) On August 1, 2011, Rocket Retailers adopted a plan
to discontinue its catalog sales division, which qualifies as a separate
component of the business, according to GAAP, regarding discontinued
operations. The disposal of the division was expected to be concluded by June
30, 2012. On January 31, 2012, Rocket’s fiscal year end, the following
information relative to the discontinued division was accumulated:
In its income statement for the year ended January 31, 2012,
Rocket would report a before-tax loss on discontinued operations of
$115,000.
$195,000.
$65,000.
$125,000.
Question 3. Question
:
(TCO 5) Changes in accounting estimates are reported
currently and prospectively.
retroactively and currently.
retroactively, currently, and prospectively.
by restating prior years.
Question 4. Question
:
(TCO 5) Which of the following is added to net income as an
adjustment under the indirect method of preparing the statement of cash flows?
Salaries payable decrease
Gain on the sale of land
Loss on the sale of equipment
Accounts receivable increase
Question 5. Question
:
(TCO 5) Review Rowdy’s Restaurants cash flow (in millions):
Rowdy’s would report net cash inflows (outflows) from
financing activities in the amount of
$1,100.
$(1,100).
$820.
$900.
(TCO 5) The difference between single-step and multiple-step
income statements is primarily an issue of consistency. presentation. measurement. valuation. Question 2. Question
: (TCO 5) On August 1, 2011, Rocket Retailers adopted a plan
to discontinue its catalog sales division, which qualifies as a separate
component of the business, according to GAAP, regarding discontinued
operations. The disposal of the division was expected to be concluded by June
30, 2012. On January 31, 2012, Rocket’s fiscal year end, the following
information relative to the discontinued division was accumulated: In its income statement for the year ended January 31, 2012,
Rocket would report a before-tax loss on discontinued operations of $115,000. $195,000. $65,000. $125,000. Question 3. Question
: (TCO 5) Changes in accounting estimates are reported currently and prospectively. retroactively and currently. retroactively, currently, and prospectively. by restating prior years. Question 4. Question
: (TCO 5) Which of the following is added to net income as an
adjustment under the indirect method of preparing the statement of cash flows? Salaries payable decrease Gain on the sale of land Loss on the sale of equipment Accounts receivable increase Question 5. Question
: (TCO 5) Review Rowdy’s Restaurants cash flow (in millions): Rowdy’s would report net cash inflows (outflows) from
financing activities in the amount of $1,100. $(1,100). $820. $900.
