Financial-Accounting-Reporting 무료 덤프문제 온라인 액세스

Brock Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative.
The adjusted trial balance at December 31, 1989 included the following expense and loss accounts:

One-half of the rented premises is occupied by the sales department. Brock's total selling expenses for 1989 are:

• A.$480,000
• B.$360,000
• C.$370,000
• D.$400,000

Income tax-basis financial statements differ from those prepared under GAAP in that income tax-basis financial statements:

• A.Do not include nontaxable revenues and nondeductible expenses in determining income.
• B.Recognize certain revenues and expenses in different reporting periods.
• C.Include detailed information about current and deferred income tax liabilities.
• D.Contain no disclosures about capital and operating lease transactions.

Lore Co. changed from the cash basis of accounting to the accrual basis of accounting during 1994. The cumulative effect of this change should be reported in Lore's 1994 financial statements as a:

• A.Prior period adjustment resulting from the change in accounting principle.
• B.Prior period adjustment resulting from the correction of an error.
• C.Component of income after extraordinary item.
• D.Component of income before extraordinary item.

According to the FASB conceptual framework, which of the following is an essential characteristic of an asset?

• A.An asset is obtained at a cost.
• B.An asset provides future benefits.
• C.The claims to an asset's benefits are legally enforceable.
• D.An asset is tangible.

Which of the following types of entities are required to report on business segments?

• A.Nonpublic business enterprises.
• B.Joint ventures.
• C.Publicly-traded enterprises.
• D.Not-for-profit enterprises.