AccountingBLOCK - Accounting Forums - View Single Post - Balance Sheet and Income Statement related questions

flexdeck · 03-15-2008, 12:00 PM

Accrued revenues would normally appear on the balance sheet as:

A. plant assets
B. current liabilities
C. long-term liabilities
D. current assets

A subsequent event

A. affects only subsequent reporting periods
B. may occur any time after financial statements are issued
C. is in some cases reflected in the statements of preceding period
D. is not covered by the independent auditors' report

Bad debts are recognized according to the _________ expense recognition principle.

A. direct matching
B. immediate recognition
C. systematic and rational allocation
D. critical event

Byron Inc. decided on August 1, 2005, to dispose of a segment of its business. The segment was sold on November 30, 2005. Byron's income for 2005 included income of $250,000 from operating the discontinued segment from January 1 to the sale date. Of this amount, $180,000 was earned prior to the measurement date. Byron incurred a loss on the November 30 sale of $220,000. Ignoring taxes, _______ should be reported in the 2005 income statement as net income or loss under Discontinued operations.

A. $220,000 loss
B. $150,000 loss
C. $ 30,000 income
D. $250,000 income

03-15-2008, 12:00 PM	#2 (permalink)
flexdeck Status: Getting feet wet Join Date: Mar 2008 Posts: 32	Accrued revenues would normally appear on the balance sheet as: A. plant assets B. current liabilities C. long-term liabilities D. current assets A subsequent event A. affects only subsequent reporting periods B. may occur any time after financial statements are issued C. is in some cases reflected in the statements of preceding period D. is not covered by the independent auditors' report Bad debts are recognized according to the _________ expense recognition principle. A. direct matching B. immediate recognition C. systematic and rational allocation D. critical event Byron Inc. decided on August 1, 2005, to dispose of a segment of its business. The segment was sold on November 30, 2005. Byron's income for 2005 included income of $250,000 from operating the discontinued segment from January 1 to the sale date. Of this amount, $180,000 was earned prior to the measurement date. Byron incurred a loss on the November 30 sale of $220,000. Ignoring taxes, _______ should be reported in the 2005 income statement as net income or loss under Discontinued operations. A. $220,000 loss B. $150,000 loss C. $ 30,000 income D. $250,000 income