Income statement and OCI

Question 1

Where is Transaction loss reported?

Answer 1

TRANSACTION LOSS/GAIN is part of NI
TRANSLATION LOSS is part of OCI

Question 2

True or False: Gain on sale of asset will be part of NI while calculating NI

Answer 2

True

Question 3

Disposal of Segment - where is estimated gain reported under discontinued operations?

Answer 3

Estimated disposal gains are not recognized only estimated losses are recognized.

Question 4

Freight in is part of purchases while calculating ______ and freight out is part of _________

Answer 4

Freight In - COGS
Freight Out - Selling expenses

Question 5

Insurance is part of ___________

Answer 5

General and Administrative expenses

Question 6

True or False: NI includes Gain from discontinued operations net of tax as a separate line item.

Answer 6

True

Question 7

COGS alternate formula

Answer 7

Cost of Goods Manufactured less Decrease in finished goods inventory

Question 8

Raw materials used formula (while calculating COGS)

Answer 8

Raw materials purchased less increase in raw materials inventory

Question 9

What is AOCI?

Answer 9

AOCI is the collective amount of OCI at a specific time and is reported on the balance sheet. At the end of every period, OCI (temp a/c) is transferred and closed to AOCI (permanent a/c) just like close of NI to retained earnings.

Question 10

Which changes in pension plan are included in OCI?

Answer 10

Changes in the PROJECTED BEENFIT obligation (PBO) (not the accumulated benefit obligation) and the FV of the pension plan assets are included in OCI.