even i was clueless…i am doing random 20 questons from wiley….i have my exam on friday
his answer is correct. The requirement of this item is to determine which condition increases Pollard’s current cost income from continuing operations. A current cost income statement appears below.
Current Cost Income Statement
Sales xxx
Cost of goods sold xxx
Current cost income from continuing operations xxx
Realized holding gain (loss) xxx
Realized income xxx
Unrealized holding gain (loss) (xxx)
Current cost net income xxx
Current cost income from continuing operations is sales revenue less expenses on a current basis. Realized holding gains (losses), the difference between current cost and historical costs of assets consumed, are then added (subtracted) to arrive at realized income (loss). Realized income (loss) is always the same as historical net income (loss). Finally, unrealized holding gains (increases in the current cost of assets held during the year) are included to arrive at current cost net income. Therefore, if current cost of goods sold is less than historical cost of goods sold, then current cost income from continuing operations will be increased compared to historical cost income from operations.
BEC Passed
FAR Passed
AUD Passed
REG Passed
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