Chapter 4: Income Statement, Comprehensive Income, Statement of Cash Flows

What are the three business evaluation methods when looking at income statement ?

1. Asset approach: turn asset into cash-liabilities: fair market values 2. Market approach: data base 3. Income approach

Comprehensive income can be reported in one of two ways:

1. in a single, continuous statement of comprehensive income or 2. into separate but consecutive statements-an income statement and a statement of comprehensive income that begins with net income and then reports OCI items to combine for comprehensive income

What is different between the balance sheet, the income statement, and the statement of cash flows?

Balance sheet is a position statement. The income statement and the statement of cash flows are change statements.

income from continuing operations includes what?

Includes the revenues, expenses, gains, and losses that will probably continue in future period is the____________

How many categories are there on the income statement report?

Income from continuing operation, discontinued operations, and earnings per share are categories in a _________________

How should tax expense report in Incomes Statement?

Tax expense should be reported separately to another line below the total income from continue operation

Income statement report

Which financial report that tells the changes in shareholder's equity that occurred during the reporting period as a result of revenues, expenses, gains, and losses?

The income statement and statement of cash flows report changes that?

changes that occurred during a particular reporting period.

Income from continuing operations includes ?

continuing operating includes revenues, expenses, gains, and losses that will probably continue in future period. Excluding those related to discontinued operation.

The income statement displays?

displays a company's operating performance, that is, its net profit or loss, during the reporting period

The purpose of the statement of cash flow?

is to provide information about the cash receipts and cash disbursements of an enterprise that occurred during a period. In describing cash flows, the statement provides valuable information about the operating, investing, and financing activities that occurred during the period.

What is the purpose of the income statement, statement of operations, and statement of earnings?

is to summarize the profit-generating activities that occurred during a particular reporting period

The income statement reports the changes in?

shareholders' equity (retained earnings) that occurred during the reporting period as a result of revenues, expenses, gains, and losses.

The statement of cash flows also is a change?

a change statement, disclosing the events that caused cash to change during the period.