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If a company reports discontinued operations, EPS must be disclosed for both income from continuing operations and net income. True or False True False
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- Ture or False When a company has no reportable non-operating activities, its income from operations is simply labeled net income.If the income statement error is discovered in a subsequent accounting period, what action is to be done by the entity? Group of answer choices a. Reclassify the item to its proper nominal account and restate the income statement of the prior year affected by the error. b. Restate the income statement of the prior year affected by the error. c. No reclassifying entry is necessary but restate the income statement of the prior year affected by the error. d. Reclassify the item to its proper nominal account. Recording of next year's sales as sales of the current year will Group of answer choices a. overstate net income of next year b. not affect retained earnings at the end of next year c. understate retained earnings at the end of the current year d. understate net income of the current yearIf the statement of financial position error is discovered in the year of error, what action is to be done by the entity? Ignore the Reclassify the item to its proper real account. Adjust the effect to the retained earnings account. Reclassify the item to nominal account.
- If the income statement error is discovered in the year of error, what action is to be done by the entity? a. Reclassify the item to its proper nominal account. b. Reclassify the item to real account. c. Adjust the effect to the retained earnings account. d. Ignore the error.What is the accounting treatment for discontinued operations? A : It is reported at its gross amount as an "other revenue or gain" or "other expense or loss". B : It is reported as an "other revenue or gain" or "other expense and loss", net of tax. C : It only needs to be disclosed in the footnotes of the financial statements. D : It may be treated as sales revenue (if it is a gain) and as an operating expense (if it is a loss).Which of the following statements relating to the accounting treatment of the identified item is CORRECT? O 1. Dividends become a legal liability of the company when they are declared and as such, they are recorded in the current liabilities section of the Balance Sheet and as an expense on the Income Statement O 2.A contingent liability should only be disclosed in the Notes to the Financial Statements because it meets the accounting definition of a liability O 3. Inventories are valued at the lower of cost and net realisable value on the Balance Sheet while in contrast, cash is valued at fair value O 4. The revenue realisation principle states that revenue can only be recognised when there has been an arms-length transaction
- Which of the following is correct? Select one: а. If a company fails to record depreciation expense, net income and assets are overstated. b. If a company fails to record depreciation expense, stockholders' equity, net income, and assets are understated C. If a company overstates depreciation expense, net income is overstated and assets are understated. d. If a company fails to record depreciation expense, net income and expenses are overstated.What is the impact on A Company financial statements if the company forgets to recognize that previously unearned revenue has been earned?A gain or loss from a transaction that is unusual in nature or infrequent in occurrence should be reported separately as a component of income Before cumulative effect of accounting changes and after results of discontinued operations. O After income from continuing operations and before results of discontinued operations. After results of income from continuing operations. O Before results of discontinued operations.
- f. What is the effect of these errors on Net Income, Earnings per Share, Total Liabilities and Retained Earnings if they are not discovered (detected) before the publication of the annual report? tPlease help with the following question, need accurate and full answer. What is the effect on liabilities, stockholder’s equity, revenues and net income if a company does not make an unearned revenue adjusting entry? Explain with suitable examplesWhy should the beginning retained earnings be adjusted for prior period errors and effects of change in accounting policy?
