Chapter 4 Income Statement

Only available on StudyMode
  • Download(s) : 706
  • Published : June 25, 2013
Open Document


Text Preview
CHAPTER 4
Income Statement and Related Information
ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)
Topics 1. Income measurement concepts. Questions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 18, 28, 31, 32, 33 1 1, 2, 7 Brief Exercises Exercises Problems Concepts for Analysis 3, 4, 5, 6, 8

2.

Computation of net income from balance sheets and selected accounts. Single-step income statements; earnings per share. Multiple-step income statements. Extraordinary items; accounting changes; discontinued operations; prior period adjustments; errors. Retained earnings statement. Intraperiod tax allocation. Comprehensive income. Disposal of a component (discontinued operations). 11, 19, 23, 24 17, 18, 19 13, 14, 15, 16, 27, 29

3.

2, 8

3, 4, 6, 7, 10, 15, 16 4, 5, 6, 8 5, 7, 9, 10, 12, 13

2, 3, 4, 5

1, 2, 7

4. 5.

3 4, 5, 6, 7

1, 4 3, 4, 5, 6, 7 4, 6, 7, 8

6. 7. 8. 9.

30 21, 22, 25, 26, 27 34 29, 35

9, 10

8, 10, 11, 12, 16 8

1, 2, 4, 5, 6

11

14, 15, 16

9

4-1

ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)
Learning Objectives 1. 2. 3. 4. 5. 6. 7. 8. Understand the uses and limitations of an income statement. Prepare a single-step income statement. Prepare a multiple-step income statement. Explain how to report irregular items. Explain intraperiod tax allocation. Identify where to report earnings per share information. Prepare a retained earnings statement. Explain how to report other comprehensive income. 1, 2 3, 4 4, 5, 6, 7, 10 5, 6, 7 8 9, 10 11 1, 2, 3, 4, 6, 7, 16 4, 5, 6, 8, 10, 14 5, 7, 8, 10, 12, 13, 16 8, 12, 13, 16 7, 8, 9, 10, 12, 13, 16 8, 11, 15, 16 14, 15, 16 2 1, 4 1, 3, 4, 5, 6, 7 1, 3, 5, 6, 7 1, 2, 3, 4, 5, 7 1, 2, 4, 5, 6 Brief Exercises Exercises Problems

4-2

ASSIGNMENT CHARACTERISTICS TABLE
Level of Difficulty Simple Simple Moderate Simple Moderate Moderate Simple Simple Simple Moderate Simple Moderate Moderate Simple Moderate Moderate Moderate Simple Moderate Moderate Moderate Moderate Moderate Simple Simple Moderate Moderate Simple Moderate Moderate Moderate Simple Time (minutes) 18–20 25–35 20–25 30–35 30–35 30–40 15–20 30–35 20–25 20–25 20–25 15–20 15–20 15–20 15–20 30–35 30–35 25–30 30–40 45–55 20–25 25–35 25–35 20–25 10–15 25–35 20–25 15–20 30–35 30–40 20–25 10–15

Item E4-1 E4-2 E4-3 E4-4 E4-5 E4-6 E4-7 E4-8 E4-9 E4-10 E4-11 E4-12 E4-13 E4-14 E4-15 E4-16 P4-1 P4-2 P4-3 P4-4 P4-5 P4-6 P4-7 C4-1 C4-2 C4-3 C4-4 C4-5 C4-6 C4-7 C4-8 C4-9

Description Computation of net income. Income statement items. Single-step income statement. Multiple-step and single-step. Multiple-step and extraordinary items. Multiple-step and single-step. Income Statement, EPS. Multiple-step statement with retained earnings. Earnings per share. Condensed income statement—periodic inventory method. Retained earnings statement. Earnings per share. Change in accounting principle. Comprehensive income. Comprehensive income. Various reporting formats. Multi-step income, retained earnings. Single-step income, retained earnings, periodic inventory. Irregular items. Multiple- and single-step income, retained earnings. Irregular items. Retained earnings statement, prior period adjustments. Income statement, irregular items. Identification of income statement deficiencies. Income reporting deficiencies. Extraordinary items. Earnings management. Earnings management Income reporting items. Identification of income statement weaknesses. Classification of income statement items. Comprehensive income.

4-3

ANSWERS TO QUESTIONS
1. The income statement is important because it provides investors and creditors with information that helps them predict the amount, timing, and uncertainty of future cash flows. It helps investors and creditors predict future cash flows in a number of different ways. First, investors and creditors can use the information on the income statement to evaluate the past performance of the enterprise. Second, the income statement helps users of the financial...
tracking img