Assume an income statement with the following classifications: A. Revenues B. Cost of goods sold C. Distribution expenses D. General & administrative expenses E. Other revenues and expenses F. Income tax on income from continuing operations G. Gain from disposal of discontinued operations H. Income tax on gain from discontinued operations I. None of the above Indicate by letter how each of the following should be classified: 1. Advertising expense 2. Amortization of a patent held as an investment 3. Cash dividend received on short-term investment 4. Depreciation on plant that manufactures good for sale (prior to sale of the goods) 5. Freight on sales 6. Income tax effect of loss on sale of plant 7. Income tax on gain on sale of short-term investment in securities 8. Interest expense 9. Interest revenue 10. Loss on sale of patent 11. Dividend revenue from investment 12. Salary of company president 13. Sales 14. Sales returns 15. Services sold

Assume an income statement with the following classifications: A. Revenues B. Cost of goods sold C. Distribution expenses D. General & administrative expenses E. Other revenues and expenses F. Income tax on income from continuing operations G. Gain from disposal of discontinued operations H. Income tax on gain from discontinued operations I. None of the above Indicate by letter how each of the following should be classified: 1. Advertising expense 2. Amortization of a patent held as an investment 3. Cash dividend received on short-term investment 4. Depreciation on plant that manufactures good for sale (prior to sale of the goods) 5. Freight on sales 6. Income tax effect of loss on sale of plant 7. Income tax on gain on sale of short-term investment in securities 8. Interest expense 9. Interest revenue 10. Loss on sale of patent 11. Dividend revenue from investment 12. Salary of company president 13. Sales 14. Sales returns 15. Services sold

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Select the best order for the following items in the income statement: 1. Income from continuing…

Q: Income Statement 1) Why are items such as sales and labour/Gross Profit on the CR side and items…

A: 1.Revenues are recorded in the credit side of the income statement. Thus, sales and labour/gross…

Q: A loss due to a discontinued operation should be reported on the income statement a. as an…

A: Introduction: An income statement is a summary of your company's profits and losses over a given…

Q: Economic Entity Assumption Monetary Unit Assumption Historical Cost Principle Going…

A: Principles of Accounting : These are the rules of accounting which are known as GAAP's (Generally…

Q: Revenue from sources other than the primary operating activity of a business like interest expense…

A: The Multistep income statement categories the different revenues and expenses incurred during the…

Q: Which of the following refers to the elements of Comprehensive Income? a) Net Income, Interest…

A: Net income is the excess of sales over all the expenses including interest expense and income taxes.

Q: Which of the following would NOT be reflected in the income statement?

A: Income statement- it is a part of financial statements prepared by the company that shows the…

Q: Which of the following would be considered by the CRA to be business income rather than property…

A: Solution for the problem:Correct answer : (c) Profit from the sale of inventory items."Profit from…

Q: under the cost recovery method of revenue recognition, a. Income is recognized immediately b. Income…

A: Cost recovery method of recognition of revenue is used when there exists substantial doubt regarding…

Q: Which of the following items are added back to Net Income when the Indirect method is being used to…

A: An organization primarily uses a cash flow statement to track and measure its financial inflows and…

Q: In which account, how do businesses keep track of their profits arising from the sale of tangible…

A: In a business, a situation arises when the firm has to sell its assets due to various reason. On…

Q: please answer the following 2 questions: 1. If there is any Depreciation, Amortization, or…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: What is the name of the accounting concept or principle that determines the amount initially entered…

A: Accounting for an entity is generally governed by various accounting concept that are generally…

Q: A In the single-step income statement: O just two groupings exist - revenues and expenses O expenses…

A: Lets understand the basics.Income statement can be prepared using two formats which are,(1) Single…

Q: For Target Corporation, which of the following is an example of Other Expenses and Losses? O…

A: Not needed

Q: A single-step income statement: a. reports gross profit b. does not report cost of goods sold c.…

A: Introduction to Income Statement Formats:An income statement can be prepared using either the…

Q: 1. If a Revaluation of an asset is done for the first time and there is a revaluation gain, this…

A: Income Statement - Income Statement is a financial statement that includes revenue earned and…

Q: 5- The ratio of Profit Before Tax Assets is known as? a-Net Profit after Taxes b-Return on assets…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which method of the matching principle is used when a company recognizes depreciation expense on the…

A: Solution: Depreciation is the way of expensing long term assets over its useful life. Depreciation…

Question

Assume an income statement with the following classifications:
A. Revenues
B. Cost of goods sold
C. Distribution expenses
D. General & administrative expenses
E. Other revenues and expenses
F. Income tax on income from continuing operations
G. Gain from disposal of discontinued operations
H. Income tax on gain from discontinued operations
I.
None of the above
Indicate by letter how each of the following should be classified:
1. Advertising expense
2. Amortization of a patent held as an investment
3. Cash dividend received on short-term investment
4. Depreciation on plant that manufactures good for sale (prior to sale of the
(spoob
5. Freight on sales
6. Income tax effect of loss on sale of plant
7. Income tax on gain on sale of short-term investment in securities
8. Interest expense
9. Interest revenue
10. Loss on sale of patent
11. Dividend revenue from investment
12. Salary of
13. Sales
14. Sales returns
15. Services sold
company president

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Classification of Income statement

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On the multiple-step income statement, which of the following would be the least likely to be found in the section often described as "Other Revenues and Expenses" (or "Other Income and Losses)? a. Dividend revenue b. Interest expense c. Gains or losses on the sale of a long-term asset d. Interest revenue e. Income tax expense
Which of the below are the correct adjustments we make to a company's EBIT to arrive at its FCFF? Select all that apply. Select All That Apply A B D E F Take out taxes Subtract depreciation and amortization Subtract capital expenditures Add back acquisition expenses Subtract changes in net working capital Add back R&D expenses ?
Income reported for a business entity depends on the proper recognition of revenues and expenses. In certain cases, costs are recognised as expenses at the time of product sale and in other situations costs are capitalised if they bring future benefits.In around 250 words, comment on the above statement. Your comments should include valid examples and illustrations.
Which of the following would be found on a company's income statement? I- cost of goods sold II- interest expense III- cash flow from operations IV- earnings before taxes A-I and IV only B-I, II, and III only C- I, II, and IV only D-I, II, III and IV
Technically, offsetting in financial statements is accomplished when a. Gains or losses from disposal of non-current assets are reported by deducting from the proceeds the carrying amount of the assets and the related selling expenses. b. The accumulated depreciation is deducted from property, plant and equipment. c. The allowance for bad debts is deducted from accounts receivable. d. The total liabilities are deducted from total assets to arrive at net assets
Which of the following are increased by credits?: a) revenues and gains b) expenses and losses c) assets d) dividends
Assume an income statement with the following classifications: RevenuesCost of goods soldDistribution expensesGeneral & administrative expensesOther revenues and expensesIncome tax on income from continuing operationsGain from disposal of discontinued operationsIncome tax on gain from discontinued operationsNone of the above Indicate by letter how each of the following should be classified: Advertising expenseAmortization of a patent held as an investmentCash dividend received on short-term investmentDepreciation on plant that manufactures good for sale (prior to sale of the goods)Freight on salesIncome tax effect of loss on sale of plantIncome tax on gain on sale of short-term investment in securitiesInterest expenseInterest revenueLoss on sale of patentDividend revenue from investmentSalary of company presidentSalesSales returnsServices sold
What is the accounting treatment for discontinued operations? A : It is reported at its gross amount as an "other revenue or gain" or "other expense or loss". B : It is reported as an "other revenue or gain" or "other expense and loss", net of tax. C : It only needs to be disclosed in the footnotes of the financial statements. D : It may be treated as sales revenue (if it is a gain) and as an operating expense (if it is a loss).
Accounting type Question: Which of the following is a non operating expense? A. Salary of Managing Director B. Depreciation C. Advertisement expenditure D. Interest on loan
Match each of the following term with the corresponding description. Not all descriptions will be used._____ Operating activities_____ Indirect method_____ Cash equivalent_____ Investing activities_____ Direct method_____ Financing activitiesA. Measures the percent of net income that comes from high-margin products.B. Includes such events as the receipt of dividends and interest on investment assets.C. Includes assets that are very liquid and have original maturities of three months or less.D. The percent of total debt represented by a company's cash account.E. These activities include only purchases made with borrowed funds.F. Where cash flows from operating activities are calculated by converting each revenue and expense item from an accrual to a cash basis.G. This ratio multiplies net income by the average rate of interest the company receives on its investments.H. This ratio uses net income instead of operating cash flow to Analysis a company's ability to finance the cost of its…
On an income statement, can a company report total revenues instead of net sales? Are these the same thing?
FASB suggest that revenues are considered to be earned: a. at the point of sale b. throughout the earnings process c. when the company is entitled to its benefits d. when cash is received