41) For a merchandiser, how is Interest Revenue classified on the income statement?
A) Income from Discontinued Operations
B) Extraordinary item
C) Other Revenues and Gains
D) Operating Expenses
42) The estimated value of a company is $18 million. The company has 2 million shares outstanding at a market price of $10 per share. You already own 1,000 shares of the stock. Should you buy, sell or hold the stock?
A) You should buy more shares of the stock.
B) You should hold the stock for now.
C) You should sell the stock.
D) There is not enough information to make a decision.
43) Prepare a multiple-step income statement for Sterner Corporation for the year ending December 31, 2015. The tax rate for Sterner Corporation is 30%. The following information is available:
Sales Revenue
$900,000
Operating Expenses
180,000
Extraordinary Loss
50,000
Loss on Sale of Patent
15,000
Cost of Goods Sold
580,000
Interest Expense
10,000
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