1. Briefly describe two situations in which changes in fair value are not reported on the Income Statement.

2. What is earnings management and quality of earnings? How is quality of earnings affected by earnings management?

3. Identify three limitations of the income statement and give an example of each.

4. What is the proper accounting for correction of errors?

5. How are the following items presented on the income statement?

Discontinued operations

Noncontrolling interest

Basic earnings per share

6. What is the difference intraperiod and interperiod tax allocation?

7. Briefly describe the FASBs guidance on the proper format for presenting comprehensive income.

8. What is Other Comprehensive Income?

9. Identify at least two items that are recorded as Other Comprehensive Income (OCI).

10. Briefly describe the proper accounting for the three accounting changes we covered in

Chapters 4 and 22.

11. Identify three limitations of a balance sheet and give an example of each.

12.Identify three methods companies use to disclose pertinent information related to financial reporting (full disclosure principle).

13. Identify at least two situations in which estimates could affect the usefulness of information on

the income statement or balance sheet.

14. What are some typical disclosures required for assets reported at fair value?

15. What is a Summary of Significant Accounting Policies?