Question 1

With a stock dividend, total market value considering all outstanding shares should decline.

Accepted Answer

A) True 
 B)False

Question 2

Other income and other expense are categories under which secondary activities of the firm not directly related to the operations are classified.

Accepted Answer

A) True 
 B)False

Question 3

The stockholders' equity of Anamanda Company at September 30, 2010, is presented below:  On October 1, 2010, the Board of Directors of Anamanda declared a 10% stock dividend to be distributed on November 10.The market price of the common stock was $15 on October 1 and $17 on November 10.What is the amount of the charge to retained earnings as a result of the declaration and distribution of this stock dividend?

Accepted Answer

A)   $0
B)   $200,000
C)   $300,000
D)   $340,000
E)   $750,000

Question 4

Which of the following will be disclosed in the reconciliation of retained earnings?

Accepted Answer

A)   adjustment for an error of a prior period
B)   net income
C)   net loss
D)   dividends
E)   all of the answers are correct

Question 5

Which of the following would be classified as an extraordinary item on the income statement?

Accepted Answer

A)   loss from a strike
B)   correction of an error related to a prior period
C)   write-off of obsolete inventory
D)   loss on disposal of a segment of business
E)   loss from prohibition of a product

Question 6

Which of the following would be included in operating income?

Accepted Answer

A)   interest income for a manufacturing firm
B)   rent income for a leasing subsidiary
C)   gain from sale of marketable securities for a retailer
D)   dividend income for a service firm
E)   none of the answers are correct

Exam 4: Income Statement

Correct Answer
verified

Which of the following would be included in operating income?

Correct Answer
verified

Which of the following would be classified as an extraordinary item on the income statement?

Correct Answer
verified

With a stock dividend, total market value considering all outstanding shares should decline.

Correct Answer
verified

Which of the following will be disclosed in the reconciliation of retained earnings?

Correct Answer
verified

Other income and other expense are categories under which secondary activities of the firm not directly related to the operations are classified.

Correct Answer
verified

Exam 4: Income Statement

Correct AnswerverifiedShow Answer

Which of the following would be included in operating income?

Correct AnswerverifiedShow Answer

Which of the following would be classified as an extraordinary item on the income statement?

Correct AnswerverifiedShow Answer

With a stock dividend, total market value considering all outstanding shares should decline.

Correct AnswerverifiedShow Answer

Which of the following will be disclosed in the reconciliation of retained earnings?

Correct AnswerverifiedShow Answer

Other income and other expense are categories under which secondary activities of the firm not directly related to the operations are classified.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified