ACC 310 Quiz 4

The occurrence which most likely would have no effect on 2020 net income (assuming that all amounts involved are material) is

the collection in 2020 of a receivable from a customer whose account was written off in 2019 by a charge to the allowance account.

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

underestimating warranty claims

which of the following is an example of managing earnings down?

revising the estimated life of equipment from 10 years to 8 years

In November and December Year 1, Dorr Co., a newly organized magazine publisher, received $72,000 for 1,000 3-year subscriptions at $24 per year, starting with the January Year 2 issue. Dorr elected to include the entire $72,000 in its Year 1 income tax return. What amount should Dorr report in its Year 1 income statement for subscriptions revenue?

0

Garnett Co. shipped inventory on consignment to Hart Co. that originally cost $50,000. Hart paid $1,200 for advertising that was reimbursable from Garnett. At the end of the year, 40% of the inventory was sold for $32,000. The agreement stated that a commission of 10% will be provided to Hart for all sales. What amount should Garnett report as net income for the year?

7600

comprehensive income can be disclosed in various formats. which of the following is an acceptable format for disclosing comprehensive income?

at the bottom of the income statement, continue from net income and add other comprehensive income to arrive at comprehensive income for the year. in a separate statement, state with net income and add other comprehensive income to arrive at comprehensive income for the year.

What might a manager do during the last quarter of a fiscal year if she wanted to improve current annual net income?

relax credit policies for customers

the income statement reveals

net earnings (net income) of a firm for a period of time.

what might a manager do during the last quarter of a fiscal year if she wanted to decrease current annual net income?

delay shipments and sales to customers until after the end of the fiscal year

which of the following is not a generally practiced method of presenting the income statement?

including prior period adjustments in determining net income

If the accountant forgets to record salary expense in the Statement of Income, what is the result?

net income is too high