Which of the following items are listed as separate line items on an income statement in...

Which of the following items are listed as separate line items on an income statement in order to facilitate analysis and understanding? (Select all that apply.)

	A gain on sale of a major division of a company
	An increase in the sale price by more than 20%
	The effect on prior years of change in depreciation method
	A loss due to fire

Solutions

Expert Solution

Solution:

Following items are listed as separate line items on an income statement in order to facilitate analysis and understanding:

1. A gain on sale of a major division of a company

2. A loss due to fire

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

The following items are located “below the line” on the income statement for a manufacturing firm:...

The following items are located “below the line” on the income statement for a manufacturing firm: Select one: a. Interest expense b. All of the listed answers c. None of the listed answers d. Sales tax or value added tax (VAT) taxes e. Deferred revenue

1. Which of the following line items below is present in both the multistep income statement and an income statement in which expenses are simply subtracted from revenues to arrive at net income?

1. Which of the following line items below is present in both the multistep income statement and an income statement in which expenses are simply subtracted from revenues to arrive at net income?Multiple ChoiceA. Income before income tax expenseB. Income from operationsC. Net incomeD. Gross profit2. Which of the following would be added to the ending cash balance per bank when performing a bank reconciliation?Multiple ChoiceA. Electronic fund transfersB. Service chargesC. NSF checksD. Deposits in transit3. On October 10, a...

For each of the items listed below, indicate in what section of the income statement or...

For each of the items listed below, indicate in what section of the income statement or retained earnings statement these items should be classified. Use the following letter code for your selections: Reported as an Ordinary or unusual gain (loss) item on the income statement as part of Income from Continunigng operations. The item is classified as a Change in Accounting Estimate and is reported as part of continuing operations on the income statement The item is classified as Discontinued...

For each of the items listed below, identify the proper placement in the income statement or...

For each of the items listed below, identify the proper placement in the income statement or retained earnings statement under U.S. GAAP. (Income from continuing operations; Discontinued operations; Extraordinary items; Accounting principle changes) 1. Change to the FIFO method from LIFO method: effect as of the beginning of the year. 2. Settlement of material litigation. 3. Prohibition of product line by the government. 4. Material gain on the sale of a factory building. 5. Change from double- declining balance to...

Place the items listed below into either the Balance Sheet or the Income Statement. Cash $10,300...

Place the items listed below into either the Balance Sheet or the Income Statement. Cash $10,300 Accounts Receivable $9,500 Supplies $2,000 Inventory $7,200 Building $78,000 Notes Receivable $20,000 Accounts Payable $7,700 Salaries Payable $5,300 Common Stock $79,000 Retained Earnings $19,700 Revenue $42,200 Cost of Goods Sold $24,500 Rent Expense $1,900 Utilities Expense $500 Module 7 Assignment #1 Introductory Accounting does not require complex math or complicated procedures. It is important to assign cost figures to their correct place in the...

Arrange the following items in the appropriate income statement and balance sheet formats. Determine in which...

Arrange the following items in the appropriate income statement and balance sheet formats. Determine in which of these two documents each of these items belongs, then include all appropriate items in outlines of an income statement and balance sheet. Prepare your response as a Word document. Sales Cash Depreciation expense Inventory Accounts payable Cost of goods sold Long-term debt Accrued expenses Accounts receivable Income tax payable Income tax expense Retained earnings Accumulated depreciation Prepaid expenses Interest expense Sales tax payable...

Describe the three-line items of the multistep income statement. Explain why it would be important for...

Describe the three-line items of the multistep income statement. Explain why it would be important for a company to break out its income in this manner.

Financial Statement Items Identify the financial statement (or statements) in which each of the following items...

Financial Statement Items Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders’ equity (SSC), balance sheet (BS), or statement of cash flow (SCF). Assets Revenue Cashflow from investing activities Stockholders’ equity Expenses Net change in cash Net Income Liabilities

Explain the procedure for construction of departmental income statement in an enterprise in which several separate...

Explain the procedure for construction of departmental income statement in an enterprise in which several separate departments function. Provide an example of a departmental income statement in which at least three shared indirect costs are divided according to three different appropriate allocation bases. Explain your example

Single-Step Income Statement The following income statement items, arranged in alphabetical order, are taken from the...

Single-Step Income Statement The following income statement items, arranged in alphabetical order, are taken from the records of Rockmore Inc. for the current year: Advertising expense $1,500 Interest expense $1,400 Commissions expense 2,415 Interest revenue 1,340 Cost of goods sold 29,200 Rent revenue 6,700 Depreciation expense—office Salaries and wages expense—office 12,560 building 2,900 Sales revenue 51,200 Income tax expense 1,540 Supplies expense—office 890 Insurance expense—salesperson's auto 2,250 Prepare a single-step income statement for the current year.

Subjects