Reporting a company's income from operations separately from non-recurring income is useful because:   Question 6 options:   income from operations has greater significance for investors in predicting future performance.   non-recurring income is subject to potential management bias.   non-recurring income is not material.   income from operations is always changing. If, during an accounting period, an expense has been incurred, but not yet paid for or recorded, then the adjusting entry would include:   Question 7 options:   a debit to a revenue account.   a credit to a liability account.   a debit to an asset account.   a credit to an expense account.

Using common-size balance sheet percentages to project individual assets, liabilities, or shareholders' equity has all of the following shortcomings except:  a. Individual assets, liabilities, and shareholders' equity are independent of each other.     b. The common-size percentages do not permit the analyst to easily change the assumptions about the future behavior of an individual asset or liability.     c. Individual assets, liabilities, and shareholders' equity are not independent of each other.     d. If a company experiences changing proportions for investments in securities among its assets, other asset categories may show decreasing percentages in some years even though their dollar amounts are increasing.

Which of the following is not a factor in producing earnings forecasts?  a) Estimating the level of dividends b) Separation of recurring and nonrecurring components c) Recognizing potential earnings management d) Recognizing potential income smoothing

High interest coverage ratio does not indicate O a. The ability to pay future dividends O b. No other answer is true O c. The ability to pay interest O d. The percentage of operating profit paid as an interest

Limitations of the balance sheet include the following, except Group of answer choices It is the basis for calculating many financial ratios Assets and liabilities are generally reported at historical cost Judgment and estimates are used in some cases The omission of items that have financial value