Identify which one of the following formula is used to calculate the net income of the service companies in an accounting period? a. Net Purchases – Cost of goods sold b. Net Sales – Cost of goods sold c. Services Revenue – Operational and Administrative Expenses d. Operational and Administrative Expenses – Service Revenue

Q: The Trading Account shows the result of which of the following a Buying and selling of goods O…

A: Trading Account Consist of the following items   1. Opening Stock of Goods 2. Purchases Made 3.…

Q: Which of the following best describes a single-step income statement? a.Operating expenses are…

A: Single Step Income Statement Revenue, expenses   and  profit or loss  ultimately generated by a…

Q: indicate whether the statement describes a multiple-step income statement or asingle-step income…

A:

Q: When rearranging financial statements, which of the following items is included in financial…

A: Financial activities  refers to  those  activities  through  which  we raise money  for achieving…

Q: Give an example of situation to show how a business adheres to each of the following accounting…

A: HISTORICAL COST - as per the historical cost concept, every company must record its assets and…

Q: Revenue from sources other than the primary operating activity of a business like interest expense…

A: The Multistep income statement categories the different revenues and expenses incurred during the…

Q: The following is a statement about a multiple-step income statement, EXCEPT A. There is a section…

A: Multiple step income statement as the name suggests shows the calculation of income in various steps…

Q: What is the name of the accounting concept in which revenue earned  during the accounting period…

A: An accrual is a journal entry that is used to recognize revenues and expenses that have been earned…

Q: the income statement, interest revenue is found in     operating revenues and expenses.…

A: Interest revenue  earned  is not the main source of income  for a business

Q: Interest expense would be classified on a multiple-step income statement under the heading O…

A: Interest expense is an expenses.

Q: capi

A: A)Appropriate circumstances to capitalise tha cost as an asset instead of an expense A capitalized…

Q: Which of the following would not be found on a single-step income statement? Revenues. Gross…

A: The single-step format uses only one subtraction to arrive at net income. Here expenses are deducted…

Q: The revenue cycle of a company generally includes which accounts?a. Inventory, accounts payable, and…

A: Revenue Cycle: Revenue cycle records all the transactions that originate from selling a product and…

Q: 6. The new term to describe the statement containing the profit or loss items tog other…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The Trading Account shows the result of which of the following   O a. Buying and selling of goods…

A: The trading account contains details relating to incomes and expenses that are directly related to…

Q: The principle of revenue recognition results in: a. recording revenue in the income statement b.…

A: In Accounting, there are certain principles and conventions which are followed to get fair view of…

Q: The main difference between the income statements of a merchandising and a service type business is:…

A: SOLUTION EXPLANATION - A MERCHANDISING COMPANY ENGAGED IN PURCHASE AND RESALE OF TANGIBLE GOODS.…

Q: Which of the following is the key performance measure reported on the income statement that is…

A: Income statement is statement showing items of income and expenses

Q: What is meant by purchase return and sales return in accounting?

A: Purchase return:A purchase return is a transaction that occurs when the buyer of the goods (for…

Q: Operating expenses are comprised of the following: O General and Administrative Expense, Cost of…

A: Operating Expenses (OpEx) are those expenses which are directly associated with the day to day…

Q: Accounting equation is developed based on which of the following ? a. Historical cost b. Money…

A: An accounting equation is an equation which states that asset is equal to the sum of liability and…

Q: Prepare a detailed Statement of Comprehensive Income. Arrange the title of the following account in…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Which accounts are increased by using debits?   Dividends, Revenue, Liabilities   Cost of Goods…

A: Assets and expenses accounts normally have debit balance and are increased by debits and decreased…

Q: a. the cost of goods on hand at the beginning and the cost of goods purchased during the period b.…

A: >Cost of Goods available for sale is includes:--Cost of goods manufactured as adjusted by…

Q: The amount of assets consumed during the performance of business operations in a period while…

A:

Q: A scrambled list of accounts from the income statement and balance sheet of Belmond, Inc. is as…

A: The question is based on the concept of Financial Accounting.

Q: Indicate the proper accounting for the following items.(a) Organization costs. (c) Operating…

A:

Q: Explain the purpose of and the information found on the income statement.

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: When performing vertical analysis of an income statement, the base amount is ________. A sales…

A: Vertical analysis of income statement shows each item of income statement as a percentage of sales…

Q: Which of the following would calculate Net Income or Net Loss? O Gross Profit - Operating Expenses O…

A: Net income is calculated as the Sales-Cost of goods sold-Operating expense Where Gross profit is…

Q: Define the expenses of products and periods and explain how they affect financial accounts.

A: This question explains about products and periods and financial accounts.

Q: The value of goods or service sold by a business during a particular period of time is known as ...…

A: Following are the definitions: Income statement: It is the statement that shows the income and…

Q: How do the Accountants measure the net income of a specified operating period?

A: Net income: The bottom line of the income statement which is the result of excess earnings from…

Q: Income reported for a business entity depends on the proper recognition of revenues and expenses. In…

A: Recognition of revenues and expense refers to the timing and period in which they shall be recorded…

Q: Which of the following expenses is usually listed last on the income statement?  a. Advertising…

A: The income statement is one of the financial statements of the business. It tells about the…

Q: A product cost is: A.Shown on the income statement with operating expenses  B. Expensed in the…

A: Costs incurred by a business can be categorized by two types i.e., product costs and period costs.…

Q: The amount of assets consumed during the performance of business operations in a period while…

A: Assets can be defined as any resource which has its own intrinsic economic value, owned and…

Q: which comes first when preparing a income statement?

A: Income statement is a statement which provides details of all income and all expenses of the…

Q: Which of the following items is not a specific account in a company's chart of accounts? Multiple…

A: Specific account the account which is not mandatory to be there in company chart of accounts.

Q: Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Cost of…

A: Definition: Financial Accounting: It refers to the process of recording the financial transactions…

Q: On a multiple step income statement, the account interest expense would be located unde

A: Interest expense: Interest Expenses is the Return paid to the Debt holders of the company It is…

Q: Under AASB101 Presentation of Financial Statements, which of the following items, if it exists, must…

A: Solution: Revenue, Share of profit of associates and cost of sales are temporary accounts that are…

Q: For each of the following, indicate whether the item would be reported on the balance sheet…

A: The financial statements of the business include balance sheet and income statement.