Scribd
Upload
295 views

Problem With Solution For Intermediate Accounting 3

The document discusses interim financial reporting requirements and a question regarding the total expenses that should be included in an income statement for a company's first quarter. It provides a scenario where a company had various losses and an insurance payment, and asks for the total expenses that should be reported in the first quarter income statement. It then shows the calculation of adding up the individual expenses for a total of 2,825,000.

Uploaded by

Luxx Lawliet
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
295 views

Problem With Solution For Intermediate Accounting 3

The document discusses interim financial reporting requirements and a question regarding the total expenses that should be included in an income statement for a company's first quarter. It provides a scenario where a company had various losses and an insurance payment, and asks for the total expenses that should be reported in the first quarter income statement. It then shows the calculation of adding up the individual expenses for a total of 2,825,000.

Uploaded by

Luxx Lawliet
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

28.

Which of the following statement is true regarding interim reporting


a. Interim reports are required on a quarterly basis
b. Interim reports require the preparation of only statement of earnings and a
statement of financial position
c. The independent view is required for interim financial reporting
d. Interim reports are not required

29. Nearest Company had the following transactions during the first quarter:
Loss from typhoon 800,000
Loss from inventory writedown 500,000
Loss from disposal of a business segment 1,500,000
Payment of fire insurance premium for calendar year 100,000

What total amount of expenses should be included in the income statement for the
first quarter?
a. 1,4500,000
b. 2,350,000
c. 2,825,000
d. 1,675,000

Solution Answer C
Loss from typhoon 800,000
Loss from inventory writedown 500,000
Loss from disposal of a business segment 1,500,000
Insurance expense (100,000/4) 25,000
Total expenses 2,825,000

You might also like