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Home / Questions / .The correction of an error in the financial statements of a prior period should be reflec

.The correction of an error in the financial statements of a prior period should be reflec

.The correction of an error in the financial statements of a prior period should be reflected, net of applicable income taxes, in the current

a.Income statement after income from continuing operations and before extraordinary items

b.Income statement after income from continuing operations and after extraordinary items

c.Retained earnings statement as an adjustment of the opening balance

d.Retained earnings statement after net income but before dividends

22.A loss from  the disposal of a component of a business enterprise should be reported separately as a component of income

a.Before extraordinary items

b.After extraordinary items

c.After extraordinary items and cumulative effect of accounting changes

d.Before extraordinary items and cumulative effect of accounting changes

23.A prior period adjustment should be reflected, net of applicable income taxes, in the financial statements of a business entity in the

a.Retained earnings statement after net income but before dividends

b.Retained earnings statement as an adjustment of the opening balance

c.Income statement after income from continuing operations

d.Income statement as part of income from continuing operations

24.Antidilutive securities would generally be used in the calculation of

Basic                    Diluted

Earnings per shareEarnings per share

a.YesYes

b.NoYes

c.NoNo

d.YesNo

25.A change in the salvage value of an asset depreciated on a straight-line basis and arising because additional information has been obtained is

a.An accounting change that should be reported  in the period of change and future periods of change if the change affects both

b.An accounting change that should be reported by restating the financial statements of all prior periods presented

c.A correction of an error

d.Not an accounting change

26.A loss should be reported separately as a component of net income when it is unusual in nature and which of the following?

Material   Infrequent

In AmountIn Occurrence

a.No        Yes

b.NoNo

c.Yes        No

d.YesYes

27.When a component of a business has been discontinued during the year, this component’s operating losses of the current period up to the measurement date should be included in the

a.Income statement as part of the income (loss) from operations of the discontinued component

b.Income statement as part of the loss on disposal of the discontinued component

c.Income statement as part of the income (loss) from continuing operations

d.Retained earnings statement as a direct decrease in retained earnings

Dec 10 2019 View more View Less

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