Which of the following is a required disclosure in the income statement when reporting the disposal of a component of the business?
O Results of operations of a discontinued component should be disclosed immediately before income from continuing
operations.
O The gain or loss on disposal should be reported as an unusual gain or loss.
@® Earnings per share from continuing operations, discontinued operations, and net income should be disclosed on the face of
the income statement.
O The gain or loss on disposal should not be segregated but should be reported together with the results of continuing
operations.
Earnings management generally makes income statement information more useful for predicting future earnings and cash flows.
O True
® False
In calculating earnings per share, companies deduct preferred dividends from net income if
they are convertible preferred shares.
they are callable preferred shares.
they are noncumulative though not declared.
the dividends are declared.
, The major elements of the income statement are
O operating section, nonoperating section, discontinued operations, and cumulative effect.
@® revenues, expenses, gains, and losses.
O revenues, irregular items, and general expenses.
O revenue, cost of goods sold, selling expenses, and general expenses.
Which of the following items will not appear in the statement of stockholders’ equity?
O Prior period adjustment
O Dividends declared
@® Discontinued operations
O Net losses
Comprehensive income includes all of the following except
O unrealized holding gains.
O dividend revenue.
@® investments by owners.
O losses on disposal of assets.
Retained earnings is decreased by all of the following except
® Other comprehensive loss
O Loss on discontinued operations
O Dividends declared
O Net losses
O Results of operations of a discontinued component should be disclosed immediately before income from continuing
operations.
O The gain or loss on disposal should be reported as an unusual gain or loss.
@® Earnings per share from continuing operations, discontinued operations, and net income should be disclosed on the face of
the income statement.
O The gain or loss on disposal should not be segregated but should be reported together with the results of continuing
operations.
Earnings management generally makes income statement information more useful for predicting future earnings and cash flows.
O True
® False
In calculating earnings per share, companies deduct preferred dividends from net income if
they are convertible preferred shares.
they are callable preferred shares.
they are noncumulative though not declared.
the dividends are declared.
, The major elements of the income statement are
O operating section, nonoperating section, discontinued operations, and cumulative effect.
@® revenues, expenses, gains, and losses.
O revenues, irregular items, and general expenses.
O revenue, cost of goods sold, selling expenses, and general expenses.
Which of the following items will not appear in the statement of stockholders’ equity?
O Prior period adjustment
O Dividends declared
@® Discontinued operations
O Net losses
Comprehensive income includes all of the following except
O unrealized holding gains.
O dividend revenue.
@® investments by owners.
O losses on disposal of assets.
Retained earnings is decreased by all of the following except
® Other comprehensive loss
O Loss on discontinued operations
O Dividends declared
O Net losses
