ACCT304 Week 8 Final Exam Complete Solution

Question: #621

What were the major breakthroughs that contributed to a more scientific understanding of disease causation?

Solution: #639

ACCT304 Week 8 Final Exam Complete Solution

1. Income from continuing operations sometimes includes gains from nonoperating activities. (2 points)
True
False
2. Income from continuing operations is an after-tax number consisting of revenues, expenses, gains, and losses. (2 points)
True
False
3. Income from continuing operations equals net income only in the absence of separately reported items. (2 points)
True
False
4. Intraperiod tax allocation is the process of associating income tax effects with the income statement components that create those effects. (2 points)
True
False
5. If the effective tax rate is 40%, a $200,000 before-tax extraordinary gain would increase net income by $120,000. (2 points)
True
False
6. If General Motors ceased production of the Corvette, it would report any material gains or losses that would result under discontinued operations. (2 points)
True
False
7. Discontinued operations require reclassification of prior years' income statements but no change in prior years' net income. (2 points)
True
False
8. Operating income or loss from discontinued operations up to the disposal date is separately reported. (2 points)
True
False
9. The measurement and disposal dates of discontinued operations must fall within the same fiscal year. (2 points)
True
False
10. If an overall loss from discontinued operations is expected, then the loss is reported in the year in which the measurement date falls. (2 points)
True
False
11. Estimated gains from discontinued operations can be reported in the measurement year only to the extent of estimated losses. (2 points)
True
False
12. An item must meet the subjective criteria of being both unusual and infrequent to be reported as extraordinary. (2 points)
True
False
13. The definition of what constitutes an extraordinary item should be independent of the operating environment. (2 points)
True
False
14. Material restructuring costs are reported as an element of income from continuing operations. (2 points)
True
False
15. The cumulative effect of a change in accounting principle is the difference between the ending balance in retained earnings and what the balance would have been had the new method been applied all year. (2 points)
True
False
16. A change in reporting entity is shown separately on the income statement in the year of the change. (2 points)
True
False
17. All corporations must disclose EPS. (2 points)
True
False
18. EPS disclosure is required for all items reported net of tax on the income statement. (2 points)
True
False
19. Net income is the starting point in disclosing comprehensive income. (2 points)
True
False
20. Quality of earnings refers to the ability of reported earnings or income to predict future earnings. (2 points)
True
False
21. The distinction between operating and nonoperating income relates to: (2 p...