Interim Reporting

Question 1

How to calculate Interim Income Tax expense for the 2nd Quarter?

Answer 1

Add all income to the current quarter
multiply times Income Tax rate %
Subtract the prior quarters tax expense from the result

Question 2

Temporary market declines expected to reverse

Answer 2

are not recognized in the interim statements

Question 3

For interim financial reporting, a company’s income tax provision for the second quarter of 20X1 should be determined using the

Answer 3

effective tax rate expected to be applicable for the full year of 20X1 as estimated at the end of the second quarter of 20X1

Question 4

How are discontinued operations that occur at midyear initially reported?

Answer 4

Discontinued operations should be reported separately, net-of-tax, on the income statement for the interim period. Disclosure in the notes to the interim statements is required

Question 5

FASB ASC 270-10-45-1 concluded that interim financial reporting should be viewed as

Answer 5

reporting for an integral part of an annual period

Question 6

For external reporting purposes, it is appropriate to use estimated gross profit rates to determine the cost of goods sold for

Answer 6

Interim Financial Reporting - Estimated COGS

Year end Reporting uses Actual COGS

Question 7

What FASB section has Interim Reporting?

Answer 7

270