1. If the inventory account at the end of the year is understated, the effect will be to a.overstate the gross profit on sales. b.understate the net purchases. c. overstate the cost of goods sold. d.overstate the goods available for sale 2. Which one among the following statements is not a characteristic of the integral view of presenting interim financial statements? a.It is the more acceptable view. b.Each interim period is recognized as a separate accounting period, regardless of the length of time involved. c. Each interim period is a part of the annual period. d.The revenues and expenses for the annual period are allocated among interim periods 3. What is correct concerning the 75% overall size test for operating segments? a. The total external and internal revenue of all reportable segments is 75% or more of the entity’s external revenue. b. The total external revenue of all reportable segments is 75% or more of the entity’s external and internal revenue. c. The total external revenue of all reportable segments is 75% or more of the entity’s external revenue. d. The total internal revenue of all reportable segments is 75% or more of the entity’s internal revenue. 4.If an entity prepares interim financial statements, which statements are required? a. Statement of financial position, income statement and statement of comprehensive income. b.Statement of financial position, income statement, statement of cash flows and statement of changes in equity. c.Income statement, statement of comprehensive income and statement of cash flows d.Statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity. 5. For interim financial reporting, a company’s income tax provision for the second quarter of 2022 should be determined using the a. Effective tax rate expected to be applicable for the full year of 2022 as estimated at the end of the first quarter of 2022. b. Effective tax rate expected to be applicable for the full year of 2022 as estimated at the end of the second quarter of 2022. c. Effective tax rate expected to the applicable for the second quarter of 2022. d.Statutory tax rate for 2022.
1. If the inventory account at the end of the year is understated, the effect will be to
a.overstate the gross profit on sales.
b.understate the net purchases.
c. overstate the cost of goods sold.
d.overstate the goods available for sale
2. Which one among the following statements is not a characteristic of the integral view of presenting interim financial statements?
a.It is the more acceptable view.
b.Each interim period is recognized as a separate accounting period, regardless of the length of time involved.
c. Each interim period is a part of the annual period.
d.The revenues and expenses for the annual period are allocated among interim periods
3. What is correct concerning the 75% overall size test for operating segments?
a. The total external and internal revenue of all reportable segments is 75% or more of the entity’s external revenue.
b. The total external revenue of all reportable segments is 75% or more of the entity’s external and internal revenue.
c. The total external revenue of all reportable segments is 75% or more of the entity’s external revenue.
d. The total internal revenue of all reportable segments is 75% or more of the entity’s internal revenue.
4.If an entity prepares interim financial statements, which statements are required?
a.
b.Statement of financial position, income statement, statement of
c.Income statement, statement of comprehensive income and statement of cash flows
d.Statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity.
a. Effective tax rate expected to be applicable for the full year of 2022 as estimated at the end of the first quarter of 2022.
b. Effective tax rate expected to be applicable for the full year of 2022 as estimated at the end of the second quarter of 2022.
c. Effective tax rate expected to the applicable for the second quarter of 2022.
d.Statutory tax rate for 2022.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
