Question Details

Corporations report which of the following in a separate section 




1.	Assume that all balance sheet amounts for Carolina Company represent average balance figures. 
Stockholders’ equity—common 	$360,000
Total stockholders’ equity	800,000
Sales revenue	400,000
Net income	76,000
Number of shares of common stock	40,000
Common stock dividends	24,000
Preferred stock dividends	4,000
What is the earnings per share for Carolina?
a.	$1.90
b.	$1.80
c.	$1.20
d.	$2.00


	2.	A corporation differs from a proprietorship and a partnership in that
a.	assets and liabilities are presented differently on the balance sheet.
b.	a corporation is considered a separate legal entity for taxation purposes.
c.	the historical cost principle only applies to proprietorships and partnerships.
d	the owners of the corporation do not have a claim on the net assets of the business.

	3.	Income statements for corporations are the same as the statements for proprietorships except for the reporting of
a.	gross profit.
b.	income from operations.
c.	income tax expense.
d.	other revenues and gains.


4.	Corporations report which of the following in a separate section of the income statement?
a.	Cost of goods sold.
b.	Income tax expense.
c.	Gross profit.
d.	Other revenues and gains.


	5.	Corporation income tax expense is
a.	usually accrued in the adjusting entry process.
b.	not usually accrued because it is not known what the exact liability will be until the tax return is filed.
c.	not reported in a separate section of a corporate income statement.
d.	reported similarly for corporations and partnerships.





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