Test Your Knowledge

Which of these items are not reported on the statement of net income:

Which of these statements is not included in the financial statements prescribed under US GAAP:

ABC Corporation has the following information for the year ended December 31, 2023:

• Accounts Receivable at year-end: $50,000
• Allowance for Doubtful Accounts at the beginning of the year: $2,500 (credit balance)
• Bad Debts Expense for the year: $7,500
• Write-offs during the year: $7,000

What is the ending balance of the Allowance for Doubtful Accounts at December 31, 2023?

Which of the following was the first country which adopted the integrated reporting in its mainstream corporate governance?

ABC Ltd sold a piece of machinery with an original cost of $200,000 and accumulated depreciation of $120,000 during the period. The gain realized on the machine was $30,000. What should be reported under cash flow from investing activity for this transaction?

With the help of the following account balance, calculate the net income for the period:

• Retained earnings at the beginning of the period: $300,000
• Retained earnings at the end of the period: $525,000
• Dividend declared during the period: $90,000

Which of these items is not included in the computation of cash flow from operating activities:

ABC cop XYZ Corporation has the following financial data for the year ended December 31, 2023:

• Net Income: $100,000
• Depreciation Expense: $10,000
• Gain on Sale of Equipment: $6,000
• Increase in Accounts Receivable: $4,000
• Decrease in Inventory: $8,000
• Increase in Accounts Payable: $2,000

Using the indirect method, what is the cash from operating activities for XYZ Corporation?

As per the FASB disclosure requirements (ASC 235-10-50-4), which of these are not included in the basic common requirement of disclosure:

Which of these items are included in the other comprehensive income:

XYZ Corporation currently has the following information about share capital:

Common shares issued: 2,000,000

Treasury stock: 400,000

It decided to split the stock in the ratio of 3-for-2 and then buy back an additional 150,000 (post-split).

Determine the number of treasury stocks held after buy-back.

Which of the following items leads to the temporary difference (tax)?

In which of the following scenarios, the accelerated method of depreciation will be the most appropriate depreciation method?

Under which of the following scenarios, the Fair Value Through Other Comprehensive Income method is used to account for investment?

Which of the following is incorrect with respect to the amortization of discount on bonds for the issuer?