acct 3110 exam 2-经管之家官网！

1.

Whichof the following is an example of managing earnings down?

A)

Changingestimated bad debts from 3 percent to 2.5 percent of sales.

B)

Revising the estimated life of equipment from 10 years to 8 years.

C)

Notwriting off obsolete inventory.

D)

Reducingresearch and development expenditures.

2.

Thesingle-step income statement emphasizes

A)

thegross profit figure.

B)

total revenues and total expenses.

C)

extraordinaryitems and accounting changes more than these are emphasized in themultiple-step income statement.

D)

thevarious components of income from continuing operations.

3.

Whichof the following is not a generally practiced method of presenting theincome statement?

A)

Including prior period adjustments in determining net income

B)

Thesingle-step income statement

C)

Theconsolidated statement of income

D)

Includinggains and losses from discontinued operations of a component of a business indetermining net income

4.

Whichof these is generally an example of an extraordinary item?

A)

Lossincurred because of a strike by employees.

B)

Write-offof deferred marketing costs believed to have no future benefit.

C)

Gainresulting from the devaluation of the U.S. dollar.

D)

Gain resulting from the state exercising its right of eminentdomain on a piece of land used as a parking lot.

5.

Howshould an unusual event not meeting the criteria for an extraordinary item bedisclosed in the financial statements?

A)

Shown as a separate item in operating revenues or expenses ifmaterial and supple-mented by a footnote if deemed appropriate.

B)

Shownin operating revenues or expenses if material but not shown as a separateitem.

C)

Shownnet of income tax after ordinary net earnings but before extraordinary items.

D)

Shownnet of income tax after extraordinary items but before net earnings.

6.

Whichof the following is a required disclosure in the income statement whenreporting the disposal of a component of thebusiness?

A)

Thegain or loss on disposal should be reported as an extraordinary item.

B)

Resultsof operations of a discontinued component should be disclosed immediatelybelow extraordinary items.

C)

Earningsper share from both continuing operations and net income should be disclosedon the face of the income statement.

D)

Thegain or loss on disposal should not be segregated, but should be reportedtogether with the results of continuing operations.

7.

Amaterial item which is unusual in nature or infrequent in occurrence, but notboth should be shown in the income statement

A)

B)

C)

D)

8.

Incometaxes are allocated to

A)

extraordinaryitems.

B)

discontinuedoperations.

C)

priorperiod adjustments.

D)

all of these.

9.

Companiesuse intraperiod tax allocation for all of the following items except

A)

Discontinuedoperations.

B)

Extraordinaryitems.

C)

Changes in accounting estimates.

D)

Incomefrom continuing operations.

10.

Wheremust earnings per share be disclosed in the financial statements to satisfygenerally accepted accounting principles?

A)

Onthe face of the statement of retained earnings (or, statement ofstockholders' equity.)

B)

Inthe footnotes to the financial statements.

C)

On the face of the income statement.

D)

Either(a) or (c).