Question

QUESTION 31

A company's Sales Revenue for an accounting period would be included in:

Select one:

a. Comprehensive Income

b. Other Comprehensive Income

c. Both Comprehensive Income and Other Comprehensive Income

d. Neither Comprehensive Income nor Other Comprehensive Income

Question 32

The disclosure of income tax effects based on the item causing the tax effect is named:

Select one:

a. Cost Principle

b. Matching Principle

c. Intra-period tax allocation

d. Inter-period tax allocation

e. Full Disclosure Principle

Question 33

Which is a typical result of a declaration and distribution of a stock dividend but not a declaration and payment of a cash dividend?

Select one:

a. Retained Earnings decreases

b. Common Stock account increases

c. Net Income decreases

d. Liabilities increase

e. Liabilities decrease

Answer 1

Answer 31:

Comprehensive income of a company provides a net view of company's income and revenues. However, other comprehensive income are mostly preferred by larger companies for their overseas operations and their effect on company's performance.

Therefore, the correct option which should be selected is a.) Comprehensive Income.

Answer 32:

The disclosure of income tax effects based on the item causing the tax effect is named as Full disclosure principle. According to which, it is necessary to explain the reasons for each entry. So, the correct option will be e.)

Answer 33:

The stock dividends lay no effect on stockholders' equity or net assets. It decreases the retained earnings of the firm and increase paid-in capital by an equal amount. Therefore, the option to be selected will be a.)