FASB's concept of comprehensive income
a. excludes transactions that involve the payment of dividends.
b. requires that all transactions must be shown on the income statement.
c. has a primary drawback because it allows management to manipulate the income figure to a certain extent.
d. allows items that are not necessarily under management's control, such as natural disasters, to be shown as an adjustment of retained earnings.
a
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The financial statements of a United States public company are most likely to follow:
A. Public Company Accounting Oversight Board Principles. B. Generally accepted accounting principles. C. Quality control standards. D. International Standards of Auditing.
Which of the following should be shown net of their tax effect on the income statement?
a. Gains and losses b. Uncollectible accounts expense c. Discontinued operations d. Unusual items
If a trend line is given as Demand = 55 + 7.8(Time), then what is the predicted demand when Time equals 10?
a. -23 b. 62.8 c. 133 d. The predicted demand cannot be determined from the information given
McCoy Corporation manufactures a computer monitor. Shown below is McCoy's cost structure: Variable cost per monitorTotal fixed cost for the yearManufacturing cost$75.20$912,000 Selling and administrative$14.60$456,000 In its first year of operations, McCoy produced 100,000 monitors but only sold 95,000. McCoy's gross margin in this first year was $2,629,600. McCoy's contribution margin in this first year was $2,109,000. Under variable costing, what is McCoy's net operating income for its first year?
A. $741,000 B. $1,261,600 C. $2,173,600 D. $266,000