M2 Flashcards
1
Q
When a fixed asset is sold, gain or loss is it recognized as part of income from continuing operations?
A
True
2
Q
How should a material transaction that is “infrequent in occurrence” and/or “unusual in nature” be presented?
A
Presented separately as a component of “income from continuing operations” when the transaction results in a gain or loss
3
Q
Legal, accounting, insurance, property tax and officers salaries are examples of
A
General and administrative expenses
4
Q
How is gross profit calculated?
A
Net sales - COGS
5
Q
Freight-in is part of?
A
COGS
6
Q
Freight-out is a?
A
Selling expense
