Cont/Disc Operations
the discontinuance of a component of an entity whose operations and cash flows can be clearly distinguished from the rest of the entity.
What are discontinued operations
What is Gross Profit
Name any of the three approaches to recording accounting changes?
Retrospective, Prospective, and Modified Retrospective
(Net Income-Dividends on Pref. Stock)/Average shares of common stock outstanding
Basic EPS
T/F the two most commonly approaches to prepare an income statement are single-step and multi-step
T
T/F if a component of an entity is held for sale we account for it as continued
F
Formula for Income before tax
Do we make a prior period adjustment for an immaterial error
No
Net Income/ Average total assets
Return on assets
NI+OCI
Compehensive Income
T/F discontinued operations comes first in the income statement before continued operations
F
Name any contra-revenue account
Sales discount, Sales returns and allowances, etc
This approach is used by implementing change in current and future periods
Prospective
COGS/Average Inventory
Inv. turnover
This cash basis recognizes revenues when goods are delivered and services are provided
Accrual basis
What account is used when calculating income tax of a loss
What is an income tax benefit
What step would loss on sale of investments go under?
What is income before tax?
What approach do we use for change of depreciation method
Prospective
Profit Margin on Sales
Net Income/Net sales
Name a component of OCI
AFS securiites, gain on derivatives, etc.
What do we call an account if the tax has already been subtracted from its amount
What is net of tax
R&D expense is part of what step in income statement
Operating Income
process of correcting errors in previous years’ financial statements.
Restatement
What type of ratio is average days in inventory
Activity
the ability of reported earnings to predict future cash flows
Earnings Quality