ACCT 3001 Chapter : Chapter 4 Notes
Document Summary
Revenue accounts: sales, fee revenue, interest revenue, dividend revenue, rent revenue, expenses outflows or other using-up of assets or incurrences of liabilities that constitute the entity"s ongoing major or central operations. Chapter 4 income statement and related info: single step income statement, the single-step statement consists of just two groupings: Net income: no distinction between operating and non-operating categories. Discontinued operations are reported after income from continuing operations. During 2011, it disposed of its restaurant division at a pretax loss of. Prior to disposal, the division operated at a pretax loss of ,000 in 2011. Chapter 4 income statement and related info: extraordinary items are nonrecurring material items that differ significantly from a company"s typical business activities. Extraordinary item must be both of an: unusual nature and, occur infrequently. Company must consider the environment in which it operates. Are these items extraordinary? (a) a large portion of a tobacco manufacturer"s crops are destroyed by a hail storm.
