transitory earnings are present, which of the following correctly depicts the order used on the income statement? Multiple Choice   Income tax expense, income from continuing operations, unusual items, discontinued operations, net income.   Income from continuing operations, unusual items, income tax expense, discontinued operations, net income.   Income from continuing operations, discontinued operations, income tax e

Q: Select the best order for the following items in the income statement: 1. Income from continuing…

A:

Q: tax allocation

A: Correct Answer 1 :- D The purpose is to relate the income tax expense to the items which affect the…

Q: cases would affect the current assets portion of the balance sheet

A: First option is wrong because when Current Tax Expense > Tax Payments, there is a current…

Q: Total comprehensive income is: Select one alternative: profit or loss after tax other…

A: Solution: Total comprehensive income is "profit or loss after tax + other comprehensive income after…

Q: If revenue exceeds expenses for the accounting period being measured, then we say the company…

A: net assets: Total assets - Total liabilities net loss: Expenses > Revenues net increase: Increase…

Q: If it is impracticable to determine the cumulative effect of an accounting change to any of the…

A: There are situations when company adopt to new method of accounting due to which changes occur in…

Q: Which item, if it exists, is NOT required to be presented as a line item on the face of statement of…

A: The statement of profit or loss is prepared at the end of the accounting period and it is also a…

Q: True or false The income or loss reflected in the Income Statement is the result of the application…

A: The major accounting concepts are enumerated as below : a) Accrual  b) Consistency c) Going concern…

Q: Revenue from sources other than the primary operating activity of a business like interest expense…

A: The Multistep income statement categories the different revenues and expenses incurred during the…

Q: What are the four types of gains and losses not included in income statements in comprehensive…

A:

Q: Deductions from gross income are subtracted from gross income to derive taxable net income. TRUE OR…

A: Gross income is the aggregate total income that is received by a taxpayer that is not tax-exempt…

Q: Which of the following accounting methods is commonly used for recognizing income and expenses in…

A: Accrual basis accounting is the most common accounting method used for recognizing income and…

Q: Timing differences are differences between accounting income and taxable income that originate in…

A: As per IFRS 12 or PFRS12 , INCOME TAXES  Temporary differences are two types  1.Taxable temporary…

Q: Which of the four basic accounting reports indicates thatit is appropriate to consider revenues and…

A: Four basic accounting reports are: Income Statement Balance Sheet Cash flow Statement Statement of…

Q: In a multiple-step income statement, operating expenses are subtracted from gross profit to compute…

A: Operating expenses are incurred to operate the business and these expenses are not included in the…

Q: An entity shall present all items of income and expenses recognized in a period: I-in a single…

A: Profit and loss is a financial statement that helps in depicting the position of profitability of an…

Q: PROBLEM 3: EXERCISES 1. Park Co. has the following information for the current year: Pretax income $…

A: Deferred tax liabilityWhen a firm's taxable income for financial reporting purposes and its taxable…

Q: Which is not generally accepted in presenting the income statement?

A: Prior period errors are accounting errors that occur in a company's financial statements in one…

Q: Which of the following cases would affect the noncurrent liabilities portion of the balance sheet?…

A: When Taxable income is greater than the accounting income then deferred tax liability should be…

Q: What is “comprehensive income”? Its composition varies from company to company but may include which…

A: Comprehensive income: The total of net income and other comprehensive income (OCI) is referred to as…

Q: Corporations report which of the following in a separate section of the income statement? O Other…

A: The income statement is one of the three major statements reported by corporations that reveal the…

Q: Which of the following items isreported net of related income taxes?a. Gain or loss from…

A:

Q: temporary difference Interest earned on investments in tax-exempt government securities. Interest…

A: Nondeductible expenses refer to those expenses which a company can subtract from its income in order…

Q: A purpose of an adjustment to income is to (option: a.reduce gross income? b. help determine gross…

A: The purposes of adjustments to income in the context of U.S. taxation are as follows:Purpose of an…

Q: Which option is the correct definition of tax base? Select one: a. Tax base is the amount the asset…

A: Explanation: Tax Base is defined as the amount that is attributed to an asset or liability for tax…

Q: True or false: Income tax expense may be disclosed either on the income statement or in the notes to…

A: The total amount of taxes owed to a taxation authority by an individual, corporation, or other…

Q: Accounting profit is O A. The The profit or loss is for a period determined before deducting in…

A: There are two types of income. One is accounting income, and the other is taxable income. Tax…

Q: Sales tax payable, accounts payable, payroll liabilities and unearned revenue are all examples of:

A: The correct answer is: (D) Current liabilities  These four items are all obligations of the business…

Q: On the multiple-step income statement, which of the following would be the least likely to be found…

A: Other losses and incomes head in the multistep income statement shows all the expenses and revenues…

Q: Which cost flow assumption must be used for financial reporting if it is also used for tax…

A: Financial reporting: Financial reporting is a typical accounting procedure in which financial…

Q: The term ‘Operating Profit’ means profit before _____ a. Interest b. Tax c. Interest and tax d.…

A: Formula: operating profit = Sales - Cost of goods sold - Operating expenses - Depreciation.

Q: How are discontinued operations reported in the income statement?

A: Discounted operations:   These operations refer to the disposal of sale of significant element of…

Q: Indicate the type of Deferred Tax account created by Prepaid Expenses and Accrued Revenues,…

A: The balance sheet includes the assets, liabilities and stockholders' equity of the company.

Q: Communication (income statement): The balance of Interest Expense from accruing interest to be paid…

A: The adjustment entries are prepared to adjust the revenue and expenses for the current period. The…

Q: An adjustment to income due to a non-recurring item is regarded as: O transitory earnings. O…

A: An adjustment to income due to a non-recurring item is regarded as a significant factor in financial…