11.Operating events include
a.the payment of dividends and accounting principle changes.
b.inflows and outflows of assets due to the generation of revenues.
c.purchases, sales, and exchanges of long-term assets.
d.expenses and costs of acquiring plant assets .
12.On the income statement, interest revenue is found in
a. operating revenues and expenses.
b. other revenues or expenses.
c. the disposal of a business segment section.
d. the extraordinary gains or losses section.
e. the cumulative effects section.
13.On the income statement, marketing expenses are reported as
a. operating revenues and expenses.
b. other revenues or expenses.
c. the disposal of a business segment.
d. an extraordinary gain or loss.
e. a cumulative effect.
14.On the income statement, a gain from the sale of stock is reported as
a. operating revenues and expenses.
b. other revenues or expenses.
c. a disposal of a business segment.
d. an extraordinary gain or loss.
e. a cumulative effect of a change in accounting principle.
15.On the income statement, the loss from selling an independent business component of the company is reported as a(n)
a. operating revenue or expense.
b. other revenue or expense.
c. disposal of a business segment.
d. extraordinary gain or loss.
16.Which of the following statements is false regarding diluted earnings per share?
a. Reporting diluted earnings per share is required by GAAP when potentially significant dilution of EPS exists.
b. Diluted earnings per share can be used to reflect the extent of potential share dilution.
c. Diluted earnings per share is not reported by some companies.
d. Diluted earnings per share is always the same as basic earnings per share.
17.Recognition of bad debt expense is an event considered to be
a. an operating activity cash flow.
b. both unusual and infrequent.
c. neither unusual nor infrequent.
d.a financing cash flow.
18.On the income statement, the result of selling equipment is reported as a(n)
a. operating revenue or expense.
b. other revenue or expense.
c. disposal of a business segment.
d. extraordinary gain or loss.
e. cumulative effect of a change in accounting principle.
19.On the income statement, interest expense is reported as a(n)
a. operating revenue or expense.
b. other revenue or expense.
c. disposal of a business segment.
d. extraordinary gain or loss.
e. cumulative effect of a change in accounting principle.
20.On the income statement, usual and frequent income events are found in
a. operating revenues and expenses.
b. other revenues or expenses.
c. disposal of a business segment.
d. extraordinary gains or losses.
e. cumulative effects.