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The major elements of the income statement are
- Revenues, expenses, gains, and losses

Information in the income statement helps users to:
- Evaluate the past performance of the Enterprise.
- Provide a basis for the predicting future performance
- Help assess the risk or uncertainty of achieving future cash flows

Limitations of the income statement include:
- Items that cannot be measured reliably are not reported
- Income measurement involves judgment
- Income numbers are affected by the accounting methods

Which of the following would represent the least likely t use of an
income statement prepared for the business enterprise?
- Use by the investors interested in the financial position of the

Which of the following is an example of managing earnings up?
- Underestimating warranty claims

What might a manager do during the last quarter of a fiscal year if she
wanted to improve current annual net income?
- Relax credit policies for customers

What might a manager do during the last quarter of a fiscal year if she
wanted to decrease current annual income?
- Delay shipments to customers until after the end of the fiscal

Which of the following is an advantage of the single-step income
statement over the multiple-step income statement?
- It does not imply that one type of revenue or expense has
priority over another

The single-step income statement emphasizes
- Total revenues and total expenses

Analyze cash inflows and outflows for the period  Balance sheet information is useful far all of the following except? .Including prior period adjustments in determining net income  Which of the following is not a selling expense? .  How should an unusual event not meet the criteria for an extraordinary item be disclosed in the financial statement? .Judgments and estimates are used .Unusual in nature.Current fair value is not reported  The balance sheet is useful for analyzing all of the following except? . and material in amount  Which of these is a generally example of an extraordinary item? .Office salaries expense  In order to be classified as an extraordinary item in the income statement.A single-step income statement . an event or transaction should be: .A consolidated statement of income  Which of the following is not generally practiced method of presenting the income statement? .Shown as a separate item in operating revenues or expenses if material and supplemented by a footnote if deem appropriate.A multiple-step income statement .Gain resulting from the state exercising its right of eminent domain on a piece of land used as a parking lot. infrequent.Determining free cash flows  A limitation of the balance sheet that is not also a limitation of the income statement is .Many items that are of financial value are omitted .  Which of the following is a limitation to the balance sheet? .Profitability  Balance sheet information is useful for all of the following except? . Which of the following is an acceptable method of presenting the income statement? .

plant.None of these  The correct order to present current assets is: . prepaid items         Common stock – Par value Prepaid expenses – Natural resources – original cost less accumulated depreciation Property. less unamortized discount or pl Land (in use) – Unexpired or unconsumed cost Land (future plant site) – Unexpired or unconsumed cost Patents – Original cost less accumulated amortization Trading securities – Market value at balance sheet date Trade accounts payable – amount payable when due      .- Valuation of the items at historical cost  The balance sheet contributes to financial reporting by providing a basis for all of the following except? . accounts receivable. inventories.Cash.Liquidity  The net assets of a business are equal to .Determining the increase in cash due to operations  One criticism not normally aimed at the balance sheet prepared using current accounting and report in standards is . and equipment – historical cost Trade accounts receivable – Net realizable value Copyrights – original cost less accumulated amortization Merchandise inventory – Lower of cost or market Long-term bonds payable – Amount payable when due.The extensive use of separate classifications  The amount of time that is expected to elapse until an asset is realized or otherwise converted into cash is referred to as .