41.
Which of the following is not reported as an operating expense on the income statement?
42.
Which of the following statements is correct?
43.
Trend Decorations Company provides decorating services for store displays. Trend sold
equipment that it had been using to create decorations. Of the following choices, which will
Trend report on its income statement when it sells the equipment?
44.
Which of the following best describes operating revenues?
45.
Which of the following transactions will result in an increase in operating income as of the
date of the transaction?
46.
Which of the following expenses does not affect the reporting of operating income?
47.
Which of the following statements is false?
48.
The following information has been provided by Hable Company:
• Advertising expense $9,900
• Interest expense $3,700
• Rent expense for store $12,000
• Loss on sale of property and equipment $5,700
• Cost of goods sold $21,300
• Depreciation expense $7,100
• Prepaid insurance expense $1,000
How much were Hable’s total expenses in calculating operating income?
49.
The following information has been provided by Hable Company:
• Advertising expense $9,900
• Interest expense $3,700
• Rent expense for store $12,000
• Loss on sale of property and equipment $5,700
• Cost of goods sold $21,300
• Depreciation expense $7,100
• Prepaid insurance expense $1,000
What is the amount included in the Other Items section of Hable’s income statement?
50.
Smith Corporation has provided the following information:
Cash sales totaled $125,000.
Credit sales totaled $279,000.
Cash collections from customers for services yet to be provided totaled $38,000.
An $11,000 gain from the sale of property and equipment occurred.
Interest income totaled $7,700.
How much of these items were included in operating income?
51.
Lantz Company has provided the following information:
• Cash sales totaled $255,000.
• Credit sales totaled $479,000.
• Cash collections from customers for services yet to be provided totaled $88,000.
• A $22,000 loss from the sale of property and equipment occurred.
• Interest income was $7,700.
• Interest expense was $19,900.
• Supplies expense was $336,000.
• Rent expense for the store was $36,000.
• Wages expense was $49,000.
• Other operating expenses totaled $79,000.
• Unearned revenue was $4,000.
What is the amount of Lantz’s operating revenues?
52.
Lantz Company has provided the following information:
• Cash sales totaled $255,000.
• Credit sales totaled $479,000.
• Cash collections from customers for services yet to be provided totaled $88,000.
• A $22,000 loss from the sale of property and equipment occurred.
• Interest income was $7,700.
• Interest expense was $19,900.
• Supplies expense was $336,000.
• Rent expense for the store was $36,000.
• Wages expense was $49,000.
• Other operating expenses totaled $79,000.
• Unearned revenue was $4,000.
What is the amount of Lantz’s total operating expenses?
53.
Lantz Company has provided the following information:
• Cash sales totaled $255,000.
• Credit sales totaled $479,000.
• Cash collections from customers for services yet to be provided totaled $88,000.
• A $22,000 loss from the sale of property and equipment occurred.
• Interest income was $7,700.
• Interest expense was $19,900.
• Supplies expense was $336,000.
• Rent expense for the store was $36,000.
• Wages expense was $49,000.
• Other operating expenses totaled $79,000.
• Unearned revenue was $4,000.
What is the amount of Lantz’s income from operations (operating income)?
54.
Lantz Company has provided the following information:
• Cash sales totaled $255,000.
• Credit sales totaled $479,000.
• Cash collections from customers for services yet to be provided totaled $88,000.
• A $22,000 loss from the sale of property and equipment occurred.
• Interest income was $7,700.
• Interest expense was $19,900.
• Supplies expense was $336,000.
• Rent expense for the store was $36,000.
• Wages expense was $49,000.
• Other operating expenses totaled $79,000.
• Unearned revenue was $4,000.
What is the amount of Lantz’s income before income taxes?
55.
Which of the following correctly describes the impact of collecting cash from customers for
services to be provided in the future?
56.
Colby Corporation has provided the following information:
• Operating revenues from customers were $199,700.
• Operating expenses for the store were $111,000.
• Interest expense was $9,200.
• Gain from sale of plant and equipment was $3,300.
• Dividend payments to Colby’s stockholders were $7,700.
• Income tax expense was $36,000.
• Prepaid rent expense was $5,000.
What is the amount of Colby’s operating revenues?
57.
Colby Corporation has provided the following information:
• Operating revenues from customers were $199,700.
• Operating expenses for the store were $111,000.
• Interest expense was $9,200.
• Gain from sale of plant and equipment was $3,300.
• Dividend payments to Colby’s stockholders were $7,700.
• Income tax expense was $36,000.
• Prepaid rent expense was $5,000.
What is the amount of Colby’s total operating expenses?
58.
Colby Corporation has provided the following information:
• Operating revenues from customers were $199,700.
• Operating expenses for the store were $111,000.
• Interest expense was $9,200.
• Gain from sale of plant and equipment was $3,300.
• Dividend payments to Colby’s stockholders were $7,700.
• Income tax expense was $36,000.
• Prepaid rent expense was $5,000.
What is the amount of Colby’s operating income (income from operations)?
59.
Colby Corporation has provided the following information:
• Operating revenues from customers were $199,700.
• Operating expenses for the store were $111,000.
• Interest expense was $9,200.
• Gain from sale of plant and equipment was $3,300.
• Dividend payments to Colby’s stockholders were $7,700.
• Income tax expense was $36,000.
• Prepaid rent expense was $5,000.
What is the amount of Colby’s income before income taxes?
60.
Colby Corporation has provided the following information:
• Operating revenues from customers were $199,700.
• Operating expenses for the store were $111,000.
• Interest expense was $9,200.
• Gain from sale of plant and equipment was $3,300.
• Dividend payments to Colby‘s stockholders were $7,700.
• Income tax expense was $36,000.
• Prepaid rent expense was $5,000.
How much was Colby’s net income?
61.
Which of the following does not correctly describe the cash basis of accounting?
62.
A landlord collected $5,000 cash from a tenant for December 2016’s rent but the tenant’s rent
for December is $8,000. Which of the following is true with respect to the landlord’s financial
statements using generally accepted accounting principles?
63.
Which of the following is not a step pertaining to the revenue recognition principle beginning
in year 2018, for more complex customer contracts, according to both U.S. GAAP and to
International Financial Reporting Standards (IFRS)?