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Which of the following is not a component of income from operations

Which of the following is not a component of income from operations?

 

a.

Extraordinary losses

b.

Write-downs of assets

c.

Restructurings

d.

Costs and expenses

 

 

 

86.The write-down of an asset will affect

 

a.

total assets, but not net income.

b.

both total assets and net income.

c.

net income, but not total assets.

d.

neither total assets nor net income.

 

 

 

87.The quality of a company's earnings may be affected by the

 

a.

accounting methods the company uses.

b.

choice of independent auditors.

c.

industry in which the company operates.

d.

countries in which the company operates.

 

 

 

88.When alternative acceptable accounting methods exist, a better quality of earnings generally is produced from selecting an accounting method that has the effect of reporting the

 

a.

lowest amount of future earnings.

b.

greatest amount of assets currently.

c.

greatest amount of retained earnings currently.

d.

lowest amount of current earnings.

 

 

 

89.The consistency convention requires that

 

a.

the selection of a company's accounting policies be disclosed in its financial statements.

b.

a company use the same accounting procedures year after year.

c.

a company use the same independent auditors year after year.

d.

all companies operating in the same industry use the same accounting methods.

 

 

 

90.Which of the following is analyzed when a financial statement reader is looking at the nature of nonoperating items?

 

a.

Discontinued operations

b.

Interest expense

c.

Cost of goods sold

d.

Interest revenue

 

 

 

91.The existence of which of the following income statement items will reduce the quality of the bottom-line figure?

 

a.

Advertising expense

b.

Extraordinary gain

c.

Revenues from services

d.

Cost of goods sold

 

 

 

92.The quality of earnings will be affected by which of the following?

 

a.

Choice of inventory method

b.

Estimation of building's useful life

c.

Discontinued operations

d.

All of these choices

 

 

 

93.Net income does not include

 

a.

foreign currency translation adjustments.

b.

income taxes expense.

c.

discontinued operations.

d.

extraordinary gains and losses.

 

 

 

94.A corporate income statement does not contain

 

a.

extraordinary gains and losses.

b.

discontinued operations.

c.

earnings per share data.

d.

unrealized investment gains and losses.

Dec 11 2019 View more View Less

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