Q1. Sales Revenue minus (operating expenses / non-operating revenues and expenses / ____________equals Gross Profit that totals ____________million.
Q2. Gross profit minus (provision for income tax / ________________________ / non-operating revenues and expenses) equal Operating Income that totals ____________million.
Q3. Operating income plus or minus (provision for income tax / operating expenses / ____________) equal Income before Income Tax that totals ____________ million.
Q4. Income before income tax minus (____________/ non-operating revenues and expenses / COGS) equals Income from Continuing Operations that totals ____________million.
Q5. Income from continuing operations plus or minus (provision for income tax / ____________/ non-operating revenues and expenses) equal Net Income that totals ____________million.
Q6. Net income can either be distributed to stockholders as (____________/ gross profit / retained earnings) or be retained in the business as (dividends / gross profit / ____________).
Q7. On the multi-step income statement, (3 / 4 / __ / 6) different subtotals and totals provide helpful information for decision makers.
Q8. When comparing companies within the same industry, it is best to compare (____________ / Income from Continuing Operations / Net Income). Why?
Q9. In this accounting period BLOOMIN’ FLOWERS, a florist shop, purchased flowers from a wholesaler costing $24,000 and sold them to customers for $32,000. Wages and other operating expenses total $3,000. Back in the year 2003, the company purchased land for $2,000 (that was never utilized) and sold it during this accounting period for $6,000. Using these events, prepare the income statement for Bloomin’ Flowers below.
Q10. What is the difference between revenue, a gain, and net income?
Q11. The FASB and the IASB are working to establish a common format, organizing information into operating, investing, and financing activities for the (____________ / ____________).