61) Each identifiable division of a company is referred to as a segment of the business and, if sold, is reported as discontinued operations on the income statement.
62) Under the accrual method of accounting, revenues and gains are recorded when they occur, regardless of when the company receives or pays cash.
63) Operating income excludes income from discontinued operations.
64) At the end of any given accounting period, the balance in a company's
Income Tax Expense
account will not usually equal the balance in its
Income Tax Payable
account.
65) Corporations generally credit Income Tax Payable based on the amount of pretax accounting income multiplied by the income tax rate.
66) If in one year Zip's income taxes payable exceeds its income tax expense then there is a future tax liability.
67) For a given year if income taxes payable is less than income tax expenses, a future tax liability is recorded.
68) The deprecation method used by a company for income tax purposes will not be the same as the method used for financial reporting.
69) The statement of retained earnings reports the changes in all categories of equity during the period.
70) A statement of shareholder's equity does not include details about a company's issuance of stock.