Reference no: EM13579802

1.Which of the following items should be classified as an extraordinary item on a corporate income statement?

A. gain on the retirement of a bond payable

B.loss from land condemned for public use

C.loss due to an discontinued operation

D.selling treasury stock for more than the company paid for it

2.Which of the following items should be classified as an extraordinary item on a corporate income statement?

A.gain on the retirement of a bond payable

B.loss from land condemned for public use

C.loss due to an discontinued operation

D.selling treasury stock for more than the company paid for it

3.Leveraging implies that a company

A.contains debt financing.

B.contains equity financing.

C.has a high current ratio.

D.has a high earnings per share

4.Which of the following measures a company's ability to pay its current liabilities?

A.earnings per share

B.inventory turnover

C.current ratio

D.number of times interest charges earned

5.When a company changes from one acceptable accounting method to another, the change is reported

A.in the statement of retained earnings, as a correction to the beginning balance.

B.in the income statement, below income from continuing operations.

C.in the income statement, above income from continuing operations

D.through a retroactive restatement of prior period earnings.