答案和详解如下： 6.Which of the following items regarding the corporate income statement is TRUE? A) If a corporation disposes of a business segment that is separable from the company's core business activities, the results of the discontinued segment are reported as a separate line item below income from continuing operations on a pre-tax basis. B) Unusual or infrequent items appear in the income statement of a corporation as a component of net income from continuing operations. C) Companies must disclose the effect of a change in accounting principle on net income and net income expressed before extraordinary items and must also provide pro forma financial statements reflecting the effects of the change over the next three accounting periods. D) Examples of extraordinary items include expropriations of property and equipment by foreign governments, losses from earthquakes and tornados, and gains from the sale of investments in subsidiaries. The correct answer was B) Explanations for incorrect answers are as follows: §
Pro forma effects must be disclosed for all prior income statements disclosed in the financial report. Firms are not required to provide forward-looking forecasts of results.
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The gain on the sale of a subsidiary is an unusual or infrequent item.
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The results of a discontinued segment are reported below the line, net of tax (after tax).
7.Which of the following is least likely reported net of tax on the income statement under U.S. GAAP? A) Income from discontinued operations. B) Extraordinary items. C) Uninsured losses from natural disasters. D) Interest expense. The correct answer was D) Interest expense would be considered an expense that is incurred from continuing operations and, therefore, is listed prior to subtracting the income tax expense on the income statement. Income from discontinued operations and extraordinary items are included on the income statement after the net income from continuing operations is reported and after the income tax expense from continuing operations is reported. Therefore, these latter accounts are reported net of tax. 8.All the following items are reported net of taxes below net income from continuing operations on the income statement EXCEPT: A) unusual or infrequent items. B) extraordinary items. C) income from discontinued operations. D) expropriations by foreign governments. The correct answer was A) Unusual or infrequent items appear as a component of net income from continuing operations and are reported "above the line." Extraordinary items, such as expropriations, are unusual and infrequent and appear "below the line." 9.Retrospective presentation is least likely required for a change: A) from LIFO to average cost inventory valuation. B) from percentage-of-completion to completed contract revenue recognition. C) from zero salvage value to positive salvage value. D) from straight-line to accelerated depreciation. The correct answer was C) Changes in accounting principle require retrospective presentation. A change in the salvage value of an asset is a change in accounting estimate, which does not apply retrospectively. | 
发表于 2008-4-10 11:06
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