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Worksheets20A1 - Intermediate Acc. - Statement of Profit or Loss & OCI
Total questions: 5
Worksheet time: 4mins
The major elements of the income statement are:
revenue, cost of goods sold, selling expenses, and general expense.
operating section, non-operating section, discontinued operations, extraordinary items, and cumulative effect.
revenues, expenses, gains, and losses.
all of these.
Which of the following is an advantage of the single-step income statement over the multiple-step income statement?
It reports gross profit for the year.
Expenses are classified by function.
It matches costs and expenses with related revenues.
It does not imply that one type of revenue or expense has priority over another.
Which of these is generally an example of an extraordinary item?
Loss incurred because of a strike by employees.
Write-off of deferred marketing costs believed to have no future benefit.
Gain resulting from the devaluation of the U.S. dollar.
Gain resulting from the state exercising its right of eminent domain on a piece of land used as a parking lot.
Earnings per share should always be shown separately for:
net income and gross margin.
net income and pretax income.
income before extraordinary items.
extraordinary items and prior period adjustments.
An income statement shows “income before income taxes and extraordinary items” in the amount of $2,055,000. The income taxes payable for the year are $1,080,000, including $360,000 that is applicable to an extraordinary gain. Thus, the “income before extraordinary items” is (a)
