WGU D103 Intermediate Acct 1 - The income
statement Exam | Questions and Answers |
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Terms in this set (19)
What are the major elements of the Revenues, expenses, gains, and losses
income statement? Correct. The four major elements of an income
statement are revenues, expenses, and non-
operating gains and losses.
What is an advantage of the single- It does not imply that one type of revenue or
step income statement over the expense has priority over another.
multiple-step income statement? Correct. The primary advantage of the single-step
format lies in its simple presentation and the
absence of any implication that one type of
revenue or expense item has priority over another.
, How is an expense best described? Outflows or other using-up of assets or incurrences
of liabilities during a period from delivering or
producing goods, rendering services, or carrying
out other activities that constitute the entity's
ongoing major or central operations.
Correct. Expenses are defined as outflows or other
using-up of assets or incurrences of liabilities
during a period from delivering or producing
goods, rendering services, or carrying out other
activities that constitute the entity's ongoing major
or central operations.
What approach focuses on the Transaction
income-related activities that have Correct. The transaction approach focuses on the
occurred during the period? income-related activities that have occurred during
the period.
What does the single-step income Total revenues and total expenses
statement emphasize? Correct. A single-step income statement consists
of only two sections - revenues & expenses.
What can investors and creditors The amount of future cash flows
predict with the help of the Correct. An income statement can be used to
information provided by the income predict (1) the amount of future cash flows, (2) the
statement? timing of future cash flows and (3) the uncertainty
of future cash flows. However, Accounts
Receivable, a balance sheet item, can be used to
evaluate which customers may provide future cash
flows.
Which component occurs from Gain on the sale of equipment
peripheral or incidental transactions?
statement Exam | Questions and Answers |
Verified Solutions | 2026 Edition | Pass
Guaranteed
Save
Terms in this set (19)
What are the major elements of the Revenues, expenses, gains, and losses
income statement? Correct. The four major elements of an income
statement are revenues, expenses, and non-
operating gains and losses.
What is an advantage of the single- It does not imply that one type of revenue or
step income statement over the expense has priority over another.
multiple-step income statement? Correct. The primary advantage of the single-step
format lies in its simple presentation and the
absence of any implication that one type of
revenue or expense item has priority over another.
, How is an expense best described? Outflows or other using-up of assets or incurrences
of liabilities during a period from delivering or
producing goods, rendering services, or carrying
out other activities that constitute the entity's
ongoing major or central operations.
Correct. Expenses are defined as outflows or other
using-up of assets or incurrences of liabilities
during a period from delivering or producing
goods, rendering services, or carrying out other
activities that constitute the entity's ongoing major
or central operations.
What approach focuses on the Transaction
income-related activities that have Correct. The transaction approach focuses on the
occurred during the period? income-related activities that have occurred during
the period.
What does the single-step income Total revenues and total expenses
statement emphasize? Correct. A single-step income statement consists
of only two sections - revenues & expenses.
What can investors and creditors The amount of future cash flows
predict with the help of the Correct. An income statement can be used to
information provided by the income predict (1) the amount of future cash flows, (2) the
statement? timing of future cash flows and (3) the uncertainty
of future cash flows. However, Accounts
Receivable, a balance sheet item, can be used to
evaluate which customers may provide future cash
flows.
Which component occurs from Gain on the sale of equipment
peripheral or incidental transactions?
