ACCT 300; Chapter 5

discontinued operation

A _______ ________ arises when a company discontinues or plans to discontinue a business, a component of the business, or a group of components of the business.

single-step income statement

A company satisfies its items into two groups (revenues and expenses) in the ______-_____ _____ ______

net proceeds received - book value of the net assets

How to calculate gain (loss) on the sale of discontinued operations

unrealized gain

The term________ ________ refers to an increase in the value of an asset, such as a stock position or a commodity like gold, that has yet to be sold for cash.

capital maintenance concept

Under the ________ _______ ________, a corporation's net income for a period of time is the amount that it could distribute to shareholders without depleting the capital the shareholders' have invested

Basic EPS = net income available to common shareholders / weighted average # of common shares outstanding

What is the equation for Basic EPS?

= net income - preferred stock dividends

What is the equation for calculating net income available to common shareholders?

income + other comprehensive income (unrealized gains and losses)

What is the equation for comprehensive income?

total income from the year = net change in assets - additional investments of capital = capital distributed in dividends

What is the equation for total income of the year (capital maintenance concept) ?

unrealized gains and losses

What is the one element we talked about of comprehensive income?

statement of cash flows

What is the report called that reports on a company's cash inflows, outflows, and net change in cash from its operating, investing, and financing activities during the accounting period?

when it satisfies performance obligations

When do you recognize revenue?

expenses

You recognize _____ in the period in which resources are used up, the outflows of assets occur, or the liabilities are incurred, even though the cash outflows may occur during a different period.

multiple-step income statement

_____-_____ ______ ______ presents income from continuing operations using various categories and subtotals, such as gross profit, operating income, and income from continuing operations

gains

_______ are increases in equity (net assets), except those that results from revenues or investments of owners.

Comprehensive income

________ _________ is the change in equity of a company during a period from transactions, other events, and circumstances relating to nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

unrealized losses

________ _________ result from assets that have decreased in value but which have not yet been sold.

losses

________ are decreased in equity (net assets), except those that results from revenues or investments of owners.