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ACCOUNTING AND FINANCIAL REPORTING
COMPREHENSIVE FINAL EXAM LATEST 2024
ACTUAL QUESTIONS AND CORRECT VERIFIED
ANSWERS|ALREADY GRADED
A+|GUARANTEED TO PASS CONCEPTS
Which of the following items is(are) of interest to
investors and creditors? - ....ANSWER ....✔✔ All of the
items are of interest.
(Uncertainty of future cash flows, Timing of future cash
flows, Amount of future cash flows)
Which of the following statements is FALSE regarding
the measurement of income? - ....ANSWER ....✔✔ That
income numbers are affected by the accounting methods
employed is true ONLY under the Transaction approach.
The planned timing of revenues, expenses, gains, and
losses to smooth out bumps in earnings is known as: -
....ANSWER ....✔✔ earnings management
What is the major distinction between revenues and
gains (or expenses and losses)? - ....ANSWER ....✔✔
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The classification depends on the ongoing major or
central operations of the company.
Which of the following options shows the correct order
of income statement sections? - ....ANSWER ....✔✔
Operating section; nonoperating section; income tax;
discontinued operations; noncontrolling interest; EPS
Which of the following statements is FALSE regarding
the format of the income statement? - ....ANSWER
....✔✔ The single-step income statement is more useful
than the multiple step income in determining the amount,
timing, and uncertainty of future cash flows.
US GAAP requires that companies record most items,
including unusual or infrequent ones, as part of net
income. This concept is called the: - ....ANSWER ....✔✔
modified all-inclusive concept
Which of the following items would NOT be included in
the Operating Section of the Income Statement? -
....ANSWER ....✔✔ A company wrote-off $1,000,000
of inventory that was considered obsolete.
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Roco Company manufactures both industrial and
consumer electronics. Due to a change in its strategic
focus, the company decided to exit the consumer
electronics business, and in 2016 sold the division to
Sunny Corporation. The consumer electronics division
qualifies as a component of the entity according to
GAAP. How should Roco report the sale in its 2016
income statement? - ....ANSWER ....✔✔ As a
discontinued operation, reported below income from
continuing operations
calculate income from continuing ops - ....ANSWER
....✔✔ sales rev - cogs - admin exp + gain
In a multiple step income statement for a retail
company, all of the following are included in the
operating section EXCEPT: - ....ANSWER ....✔✔
dividend rev
In the Revenues section of the 2016 income statement,
Baer Food should have reported total revenues of: -
....ANSWER ....✔✔ sales rev + interest rev + gain
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Which of the following items is NOT included in the
determination of income from continuing operations?
(CMA) - ....ANSWER ....✔✔ discontinued ops
In a previous year, a supply warehouse with an
expected useful life of 7 years was erroneously
expensed. Where should this item appear on the
company's current income statement? - ....ANSWER
....✔✔ This requires the correction of an error and is
considered to be a prior period adjustment and the
beginning balance of Retained Earnings should be
restated, if material.
Which of the following items would be subject to
intraperiod tax allocation (i.e., net of tax treatment)? -
....ANSWER ....✔✔ Reporting of Discontinued
Operations
EPS calculation - ....ANSWER ....✔✔ NI - Preferred
Stock Div / CS
On January 1, 2017, Richards Inc. had cash and
common stock of $60,000. At that date, the company
had no other asset, liability, or equity balances. On
January 2, 2017, it purchased for cash $20,000 of debt
securities that it classified as available for sale. It
ACCOUNTING AND FINANCIAL REPORTING
COMPREHENSIVE FINAL EXAM LATEST 2024
ACTUAL QUESTIONS AND CORRECT VERIFIED
ANSWERS|ALREADY GRADED
A+|GUARANTEED TO PASS CONCEPTS
Which of the following items is(are) of interest to
investors and creditors? - ....ANSWER ....✔✔ All of the
items are of interest.
(Uncertainty of future cash flows, Timing of future cash
flows, Amount of future cash flows)
Which of the following statements is FALSE regarding
the measurement of income? - ....ANSWER ....✔✔ That
income numbers are affected by the accounting methods
employed is true ONLY under the Transaction approach.
The planned timing of revenues, expenses, gains, and
losses to smooth out bumps in earnings is known as: -
....ANSWER ....✔✔ earnings management
What is the major distinction between revenues and
gains (or expenses and losses)? - ....ANSWER ....✔✔
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The classification depends on the ongoing major or
central operations of the company.
Which of the following options shows the correct order
of income statement sections? - ....ANSWER ....✔✔
Operating section; nonoperating section; income tax;
discontinued operations; noncontrolling interest; EPS
Which of the following statements is FALSE regarding
the format of the income statement? - ....ANSWER
....✔✔ The single-step income statement is more useful
than the multiple step income in determining the amount,
timing, and uncertainty of future cash flows.
US GAAP requires that companies record most items,
including unusual or infrequent ones, as part of net
income. This concept is called the: - ....ANSWER ....✔✔
modified all-inclusive concept
Which of the following items would NOT be included in
the Operating Section of the Income Statement? -
....ANSWER ....✔✔ A company wrote-off $1,000,000
of inventory that was considered obsolete.
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Roco Company manufactures both industrial and
consumer electronics. Due to a change in its strategic
focus, the company decided to exit the consumer
electronics business, and in 2016 sold the division to
Sunny Corporation. The consumer electronics division
qualifies as a component of the entity according to
GAAP. How should Roco report the sale in its 2016
income statement? - ....ANSWER ....✔✔ As a
discontinued operation, reported below income from
continuing operations
calculate income from continuing ops - ....ANSWER
....✔✔ sales rev - cogs - admin exp + gain
In a multiple step income statement for a retail
company, all of the following are included in the
operating section EXCEPT: - ....ANSWER ....✔✔
dividend rev
In the Revenues section of the 2016 income statement,
Baer Food should have reported total revenues of: -
....ANSWER ....✔✔ sales rev + interest rev + gain
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Which of the following items is NOT included in the
determination of income from continuing operations?
(CMA) - ....ANSWER ....✔✔ discontinued ops
In a previous year, a supply warehouse with an
expected useful life of 7 years was erroneously
expensed. Where should this item appear on the
company's current income statement? - ....ANSWER
....✔✔ This requires the correction of an error and is
considered to be a prior period adjustment and the
beginning balance of Retained Earnings should be
restated, if material.
Which of the following items would be subject to
intraperiod tax allocation (i.e., net of tax treatment)? -
....ANSWER ....✔✔ Reporting of Discontinued
Operations
EPS calculation - ....ANSWER ....✔✔ NI - Preferred
Stock Div / CS
On January 1, 2017, Richards Inc. had cash and
common stock of $60,000. At that date, the company
had no other asset, liability, or equity balances. On
January 2, 2017, it purchased for cash $20,000 of debt
securities that it classified as available for sale. It
