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What does the Single-step Statement consist of ?
The single-step Statement consists of just two groupings: revenues and expenses
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What does the multi-step income statement list?
1.) a separation of operating and non operating activities of the company , 2.) A classification of expenses by functions, such as merchandising , selling and administration
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What goes in the Operating section?
Sales or revenue, Cost of goods sold, selling expenses, Administrative or General expenses
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What is part of the NONOPERATING SECTION?
Other revenues and gains, Other Expenses and Losses
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What is the order of the multi step items?
1. operating section, 2. nonoperating section, 3. income tax, 4. discontinued operations, 5. extraordinary items,6. EPS
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What are the six Irregular items?
1. Discontinued operations, 2. Extraordinary Gains, 3. Unusual gains and losses, 4. Changes in accounting principle 5. Changes in estimates, 6. Corrections of errors
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What 3 items does the multi step present?
Net Sales revenue, Gross Profit, Income from operations
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What qualifies as a discontinued operation?
Separate segment or line of business , or separate class of customer
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What qualifies as a extraordinary item?
Must be unusual Nature, and infrequency of Occurrence
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Where do discontinued operations of a component appear on the I/S?
on the I/S after Income from continuing operations.
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What about Extraordinary items?
They appear below Discontinued operations.
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What special items go directly to Retained Earnings?
Prior period adjustments, cumulative effect on change in a accounting principle
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What do you do for change of accounting principle?
go right to retained earnings current year is posted as normal prior to retained earnings DB R/E 400 DB dep exp 200, CR ACC DEP ... 600
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Where must you show EPS?
at income from continuing operations and Net income
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What special items go to R/E?
ERRORS and change in Acct. principle
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what is the comprehensive income statement?
all revenues and gains, expenses and losses reported in net income, and all gains and losses that bypass net income but affect stockholders equity.
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What is the modified all inclusive theory of income?
All non owner changes in a period except those speicfically excluded by future GAAP
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What are modification of all inclusive that do not go to income?
1. write down of investment in subsidiary,2. transcation gain or loss on foreign currency, 3. holding gain or loss on available for sale securities, 4. minimum liability pension adjustment
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