11 which of the following is not reported on the income statement a income taxes b n 4352226

11.Which of the following is NOT reported on the income statement?

a.income taxes

b.non-operating items

c.accumulated depreciation

d.earnings per share

12.Where, on an income statement, would you expect to find the term Advertising Expense?

a.just after gross margin

b.grouped with the other operating expenses

c.immediately after net sales revenue

d.it would not be shown on a multiple-step income statement

13.Gross margin (or gross profit) is computed as

a.net sales minus operating expenses

b.operating income minus cost of goods sold

c.cost of goods sold minus operating and administrative expenses

d.net sales of goods or services minus cost of goods sold

14.Which of the following is a false statement?

a.operating income is another term for gross profit

b.operating expense on an income statement is listed after cost of goods sold

c.some revenues and expenses on the income statement may not directly relate to a company's primary operations

d.income taxes are generally reported after other revenues and expenses on an income statement

15.Operating expenses should be reported on the income statement after

a.sales revenue and before cost of goods sold

b.administrative expenses but before cost of goods sold

c.cost of goods sold and before earnings per share

d.earnings per share but before administrative expenses

16.Operating income

a.shows the amount of income produced by the primary earning activities of the company

b.is computed by subtracting operating expenses from administrative expenses

c.is just another term for net income

d.includes the effects of operating expenses but not cost of goods sold

17.Which of the following statements about earnings per share is NOT TRUE?

a.GAAP require that corporate income statements prepared for external use present earnings per share

b.earnings per share is a measure of the earnings performance of each share of common stock during a period

c.earnings per share is a measure of the amount of dividends per share distributed to stockholders during a period

d.earnings per share is computed by dividing net income by the number of common shares outstanding during a period

18.Which of the financial statements below would reflect the financing and investing activities that occurred during the year?

Balance Sheet                          Income Statement

a.Yes                                                Yes

b.Yes                                                No

c.No                                                  Yes

d.No                                                  No

19.The term “depletion” applies to

a.equipment

b.inventory

c.buildings

d.natural resources

20.Cash or other resources expected to be converted to cash or consumed during the next fiscal year would be classified as

a.current assets

b.plant assets

c.liquid assets

d.intangible assets

Posted in Uncategorized