1)The transaction approach to determining income is a concept in which: a. incom

Question

1)The transaction approach to determining income is a concept in which:

a. income is measured as the amount that an entity could consume during a period and be as well off at the end of that period as it was at the beginning. b. the financial statement effects of business events are classified as revenues, gains, expenses, and losses, which are used to measure and define income. c. income equals the change in market value of the firm's outstanding common stock for the period. d. market values adjusted for the effects of inflation or deflation are used to calculate income

2) Saginaw Inc. decided on August 1, 2014, to dispose of a component of its business. The component was sold on November 30, 2014. Saginaw's income for 2014 included income of $250,000 from operating the discontinued segment from January 1 to the sale date. Saginaw incurred a loss on the November 30 sale of $220,000. Ignoring income taxes, what amount should be reported in the 2014 income statement as the net income or loss under "Discontinued Operations"? a. $250,000 income b. $30,000 income c. $220,000 loss d. $30,000 loss

3)Seaworthy Company's gross sales in 2014 were $3,930,000. Assuming sales returns and allowances were $74,000, sales discounts were $35,000, and freight-out was $28,000, what were Seaworthy

Explanation / Answer

1)A

2)B

3)C

4)B

5)C

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.