Printable PDFTest Prep FINANCIAL-ACCOUNTING-AND-REPORTING Exam Questions & Answers
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Vendor: Test Prep
Exam Code: FINANCIAL-ACCOUNTING-AND-REPORTING
Exam Name: Financial Reporting
Certification Provider: Test Prep
Total Questions: 163 Q&A ( View Details)
Updated on: Jun 09, 2025
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FINANCIAL-ACCOUNTING-AND-REPORTING Online Practice Questions and Answers
Thorpe Co.'s income statement for the year ended December 31, 1990, reported net income of $74,100. The auditor raised questions about the following amounts that had been included in net income:
The loss from the fire was an infrequent but not unusual occurrence in Thorpe's line of business. Thorpe's December 31, 1990, income statement should report net income of:
A. $65,000
B. $66,100
C. $81,600
D. $87,000
Reclassification adjustments must be shown in the financial statement that discloses comprehensive income:
A. To show what portion of comprehensive income is from the realization of current assets.
B. To show the tax effect of items of comprehensive income.
C. To avoid double counting in comprehensive income items, which are currently displayed in net income.
D. To avoid including transactions with shareholders in items of comprehensive income.
An inventory loss from a permanent market decline of $360,000 occurred in May 1989. Cox Co. appropriately recorded this loss in May 1989 after its March 31, 1989 quarterly report was issued. What amount of inventory loss should be reported in Cox's quarterly income statement for the three months ended June 30, 1989?
A. $0
B. $90,000
C. $180,000
D. $360,000
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