In a multiple-step income statement, operating expenses are subtracted from gross profit to compute a.other income. b.income from operations. c.net loss. d.net income.

Q: The cost that is incurred in the process of generating the income will be called as O a. Expense O…

A: Expense is the amount of cost incurred during the period. Revenue is the total amount of receipts.…

Q: What is the order of the subtotals that appear on a multi-step income statement? Gross Profit,…

A: Multi step income statement: A multiple step income statement refers to the income statement that…

Q: ___________________________ in which the similar expenses are grouped together and intermediate…

A: Revenues is the amount earned by an entity and outlays are the amounts incurred on the operations of…

Q: The profit and loss statement is also known as the O a. Statement of financial position O b.…

A: The profit and loss statement is prepared to find net profits or losses during period.

Q: Multiple-step income statements: a. Show both gross profit and income from operations b. Show…

A: Income statement is a statement which shows the performance of a firm during an accounting period.…

Q: Accumulated depreciation is a line item found in the: Statement of Financial Position O a. O b.…

A: Depreciation is the diminution in the worth of the asset due to its erosion, over use or…

Q: The income statement in which the total of all expenses is deducted from the total of all revenues…

A: The income statement is prepared to find net income or losses incurred during the period.

Q: for a relate to (a) operating activities, and (b) nonoperating activities. 18. Identify the sections…

A: Multi Step Income statement is one of the financial statements which shows all type of incomes and…

Q: Gross profit and income from operations are reported on a multiple- step but not a single-step…

A: Income statement means  a  statement where the all income , revenue , expenses and losses are given…

Q: The function of expense method reports gross margin and income from operations. True False

A: In function of expense method, the expenses are allocated based on the activity from which such…

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: Which of the following statement is TRUE for a Multi-Step Income Statement? a. It divides both…

A: Multi-Step Income Statement is prepared to classify the revenues and expenses on various grounds…

Q: Which statement is incorrect? A. Deferred income-beginning

A: Prepaid Expenses -: Prepaid Expenses are forthcoming expenditures that have been reimbursed in…

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: 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: In composite analysis, the items in the Profit and Loss alc are expressed as a percentage of *…

A: Under the composite analysis one variable is taken from the profit and loss statement while another…

Q: The following statements relate to analysis of expenses in the income statement based on either the…

A: PAS are Philippine Accounting Standards PAS 1 -  Presentation of Financial Statements.

Q: Gross profit and income from operations are reported on a multiple-step but not a single-step income…

A: Gross profit: It is a profit earned by a firm after deducting its cost related to production from…

Q: A debit balance in the Income Summary account represents a net loss. O True O False

A: The income summary account is a nominal account used to close the temporary accounts of the business…

Q: When choosing between the ‘nature’ and ‘function’ of expenses in the presentation of its statement…

A: For analyzing the expense, two methods are used, namely the nature of expense and function of…

Q: TRUE or FALSE 1. Companies are required to use two statement approach. 2. The single-step statement…

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

Q: The income statement might also be called all of the following except: Group of answer choices…

A: Income statement: The income statement determines the net income of the business by subtracting the…

Q: Net income or net loss is the difference between total revenue and total expenses over a specific…

A: Net income is the income earned by a business during a accounting period. Net income or loss is…

Q: Accounting equation is developed based on a. Revenue realization b. Dual aspect c. Money measurement…

A: The accounting equation states that assets equals to total of liabilities and shareholders' equity.

Q: In the statement of profit and loss of common size statement a. Figure of net revenue from…

A: There are various financial analysis statements such as balance sheet or profit and loss statement

Q: Interest payable, retained earnings, and sales revenue have a balance whereby credits normally…

A: Gross profit: It is a profit earned by a firm after deducting its cost related to production from…

Q: 1.The income statement can be expressed as an equation: A.Income =Income-Expenses B.Revenue-Expenses…

A: Income Statement:   A financial statement which shows profitability of company over a period of time…

Q: Under the historical cost accounting model the financial statement that is regarded as the most…

A: A financial statement is prepared by the management for users' decision making, it includes the…

Q: The income statement in which the total of all expenses is deducted from the total of all revenues…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: On a multiple-step income statement, income from operations is arrived at after considering all…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: What is reported in the discontinued operations section of the income statement?

A: Discontinued Operations: It is the second section after the continuing operations on the income…

Q: On the multiple-step income statement, which of the following would be the least likely to be found…

A: Other losses and incomes head in the multistep income statement shows all the expenses and revenues…

Q: The combination of Selling Expenses and Administrative Expenses is referred to as Select one: a.…

A: Cost sheet is a method of allocating total cost into different categories such as direct material…

Q: Which is incorrect concerning the presentation of Income Statement? A. When items of income and…

A: Presentation of Income statement :             The income statement is prepared for presenting the…

Q: alculate the following from the additional information given G Gross profit H Net profit

A: We need to compute gross and net profit of the firm.

Q: hance, a profit is period exceeds the amount of net assets at the beginning of the earned only if…

A: Physical capital maintenance : The physical capital is where capital of an organisation is regarded…

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: How are discontinued operations reported in the income statement?

A: Discounted operations:   These operations refer to the disposal of sale of significant element of…

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 of the following statements related to multiple-step Statement of Profit or Loss is not true?…

A: A multiple-step income statement reports a company's revenues, expenses and overall profit or loss…

Q: Based on the information above compute and interpret: 1.Profitability Ratio a) Gross Profit Ratio b)…

A: 1. Profitability ratios a) Gross Profit Margin = (Gross profit / Net sales ) *100     Gross profit =…

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 statement is TRUE for a Multi-Step Income Statement?

A: A multi step income statement is a statement where the expenses are divided in into operating and…

Q: In a multiple-step income statement, the dollar amount for income from operations is always the same…

A: A multiple step income statement refers to the income statement that shows the operating and…

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: If a company captúrales a cost that should have been expensed.... A. Expenses will be overstated and…

A: 1. Capital Expenditure - Capital Expenditure is incurred to acquired long term assets. Company…

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: Other income is   a. added to operating income. b. deducted from operating income. c. added to gross…

A: Other income is those income which are not earned in normal course of business. It is an income…