Questions from Financial Reporting

Q: Why is net income–noncontrolling interest deducted before arriving at net

Why is net income–noncontrolling interest deducted before arriving at net income?

Q: Review the consolidated income statement, expenses analyzed by nature (Exhibit

Review the consolidated income statement, expenses analyzed by nature (Exhibit 4-13). Comment on similarities and differences to the U.S. GAAP income statement. Answer: This represents a finer line i...

Q: Give three examples of unusual or infrequent items that are disclosed separately

Give three examples of unusual or infrequent items that are disclosed separately. Why are they shown separately? Are they presented before or after tax? Why or why not?

Q: Why is the equity in earnings of nonconsolidated subsidiaries sometimes a problem

Why is the equity in earnings of nonconsolidated subsidiaries sometimes a problem in profitability analysis? Discuss with respect to income versus cash flow.

Q: How does the declaration of a cash dividend affect the financial statements

How does the declaration of a cash dividend affect the financial statements? How does the payment of a cash dividend affect the financial statements?

Q: Explain the relationship between the income statement and the reconciliation of retained

Explain the relationship between the income statement and the reconciliation of retained earnings.

Q: List the three types of appropriated retained earnings accounts. Which of

List the three types of appropriated retained earnings accounts. Which of these types is most likely not a detriment to the payment of a dividend? Explain

Q: A balance sheet represents a specific date, such as “December

A balance sheet represents a specific date, such as “December 31,” while an income statement covers a period of time, such as “For the Year Ended December 31, 2011.” Why does this difference exist?

Q: Describe the following items: a. Net income–noncontrolling

Describe the following items: a. Net income–noncontrolling interest b. Equity in earnings of nonconsolidated subsidiaries

Q: The income statement of Tawls Company for the year ended December 31

The income statement of Tawls Company for the year ended December 31, 2012, shows the following: Required a. Compute the net earnings remaining after removing nonrecurring items. b. Determine the e...