Question 31 (1 point)

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In November and December 2021, Lane Co., a newly organized magazine publisher, received $60,000 for 1,000 three-year subscriptions at $20 per year, starting with the January 2022 issue. Lane included the entire $60,000 in its 2021 income tax return. What amount should Lane report in its 2021 income statement for subscriptions revenue?

Question 31 options:

	$0
	$3,333
	$20,000
	$60,000

Question 32 (1 point)

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Which of the following is false about an income statement?

Question 32 options:

	Income measurement involves judgment
	It is used to measure the solvency of a company
	Items that cannot be measured reliably are not reported in the income statement
	Income numbers are affected by the accounting methods employed

Question 33 (1 point)

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Which of the following is an example of managing earnings up?

Question 33 options:

	Decreasing estimated salvage value of equipment
	Accruing a contingent liability for an ongoing lawsuit
	Underestimating warranty claims
	Writing off obsolete inventory

Question 34 (1 point)

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The single-step income statement emphasizes

Question 34 options:

	operating and non-operating expenses
	total revenues and total expenses
	the gross profit figure
	the various components of income from continuing operations

Question 35 (1 point)

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Which of these is generally not reported as other revenue/gain or other expense/loss?

Question 35 options:

	Loss incurred because of a strike by employees
	Gain resulting from the sales of investments
	Income tax expense
	Write-off of deferred marketing costs believed to have no future benefit

Question 36 (1 point)

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Which of the following is a required disclosure in the income statement when reporting the disposal of a component of the business?

Question 36 options:

	Results of operations of a discontinued component should be disclosed as other comprehensive income
	The gain or loss on disposal should be reported as other revenue/gain or other expense/loss
	The gain or loss on disposal should not be segregated, but should be reported together with the results of continuing operations
	Earnings per share from continuing operations, discontinued operations, and net income should be disclosed on the face of the income statement

Question 37 (1 point)

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Earnings per share should always be shown separately for

Question 37 options:

	net income and gross margin
	net income and pretax income
	Unusual items and prior period adjustments
	net income and discontinued operations

Question 38 (1 point)

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Which of the following items will not appear in the retained earnings statement?

Question 38 options:

	Discontinued operations
	Prior period adjustment
	Net loss
	Dividends

Question 39 (1 point)

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Which of the following is included in comprehensive income?

Question 39 options:

	Distributions to owners
	Unrealized gains on foreign currency translation
	Investments by owners
	Changes in accounting principles

Question 40 (1 point)

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A statement of stockholders' equity includes a column for each of the following except

Question 40 options:

	retained earnings
	accumulated other comprehensive income
	net income
	common stock