Question 48 ( 7 Marks) answer the following multiple choice questions with the most correct answer

Which of the following accounts would have a balance that carries over from one period to the next? O Revenue O Insurance expense O Prepaid insurance O Dividends declared The difference between gross profit and the company's operating expenses is O sales revenue. O gross profit O O operating income. O net income. Under the contract base approach, when management estimates the extent of expected returns as a form of variable consideration, the company must establish a(n): Warranty expense account O Returns and allowances account O Refund liability account O Warranty liability account Basic EPS is O a measurement of company growth. O required on the financial statements under IFRS. O used by creditors to make lending decisions. O used to determine share price, the lower the EPS the higher the share price. Indicators that control has been transferred to a customer under the contract-based approach include all of the following, except for O payment has been received. O transfer of risks and rewards of ownership. O physical possession. o legal title. All of the following are examples of service revenues except O cell phone, internet, or television services. O cargo revenues when airlines provide flight services to their customers. O textbook sales by universities and colleges. O service and maintenance revenue by vehicle manufacturers. Comprehensive income is equal to O net income minus other comprehensive income. O net income plus other comprehensive income. O gross profit plus other comprehensive income. O O gross profit minus other comprehensive income