Question

Listed below are several terms and phrases associated with income statement presentation and the statement of cash flows. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it a. c. List A 1. Intraperiod tax allocation 2. Comprehensive income Unrealized holding gain on 3. investments 4. Operating income 5. A discontinued operation 6. Earnings per share 7. Prior period adjustment 8. Financing activities 9. Operating activities (SCF) 10. Investing activities 11. Direct method 12. Indirect method List B An other comprehensive income item. b. Starts with net income and works backwards to convert to cash. Reports the cash effects of each operating activity directly on the statement d. Correction of a material error of a prior period. e. Related to the external financing of the company. f. Associates tax with income statement item. g. Total nonowner change in equity. Related to the transactions entering into the determination of net h. income. i. Related to the acquisition and disposition of long-term assets. j. Required disclosure for publicly traded corporation. k. A component of an entity. 1. Directly related to principal revenue-generating activities.

Answer 1

1 Intra period tax allocation & Associates tax with income statement item. a) comprehensive Income a Total nonowner change in equity. 3) Un realized holding gain on investments i An other comprehensive income item. 4) operating income i * Directly related to principal revenue-generating activities A discontinued operation : * A component of an entity 6) Earnings per share :- Required disclosuse for publicly traded Corporation prior period adjustment : correction of maternal enor of prior period. 8) Financing activities i Related to the external financing of the company.

@ 9) operating activities * Related to the transactions enterings into the determination of net income. 10) Investing activities Related to the acquisition and disposition of long term assets. 11) Direct method Reports the cash effects of each operating activity directly on the statement. 12) Indirect method :- Starts with net income and works backwards to convert to cash.