In the income statement, which is not considered a contra-revenue account? -Freight-out -Sales discount -Sales returns -Sales allowance -none of the above

Q: Tell whether each of the following accounts is part of net sales, cost of goods sold, operating…

A: Explanation- All are in different different account according to their nature.Here is the nature of…

Q: Which item could normally be treated similarly under both cash basis and accrual basis of…

A: Basis of the accounting is defined as the methodology under which the expenses as well as the…

Q: and

A: Answer: Income statement-Negative effect: Inventories are not recorded in the income statement.…

Q: The "Sales discount" account will show up on which of the following financial statements? O…

A: Sales discount: Generally goods sold on credit. If the buyer pays amount with in the discount period…

Q: Which of the following statements is incorrect? A. The accrual method, which builds directly on the…

A: Following are the correct statement: 1. The accrual method, which builds directly on the revenue and…

Q: Which of the following is a permanent account? Dividend Declared Allowance for Doubtful ACcount…

A: Permanent accounts, which are also called real accounts, are company accounts whose balances are…

Q: When preparing the statement of financial position of LBM Ltd, which line item does not fall under…

A:

Q: Which of the following is not correct with respect to accrual accounting?   Accrual accounting can…

A: The accrual basis concept is the most common concept used by business to record revenue and…

Q: Finally indicate the effect of the transactions to cash flows. Transactions Activity Reason Effect…

A: CFS termed as Cash Flow Statement is the statement which shows the financial performance of the…

Q: explain how Value drivers are related to financial statement analysis and explain their behavior…

A: 1) A valuation driver refers to the factors that will the help the business to increase its value in…

Q: istinguish between cash-basis accounting and accrual-basis accounting. Why is accrual-basis…

A: The main difference between accrual and cash accounting is the timing when to record expenses and…

Q: All of the following cash-basls accounting are false, excent does not match expenses incurred with…

A: Under cash basis accounting, the revenue earned and expenses incurred are recorded on the basis of…

Q: Which income statement account(s) would be affected by a policy choice at the same time as the…

A: Inventory is directly related to the cost of goods sold. To change the policy of valuation of…

Q: a) Depreciation expenses

A: Depreciation is a non cash expense which needs to be added back to the cash flow statment along side…

Q: Is it impossible for a company to report positive net income on the income statement but have…

A: Cash flow from the operating activities refers to the inflow and outflow of the cash in the business…

Q: which of the following statements regarding free cash flow is true? a.Free cash flow measures the…

A: Free cash flow represents the amount that a company generates after excluding non-cash expenses and…

Q: Which of the following transaction is not recorded in the general journal? Select one: A. All of…

A: Correct option is A i.e.  All of the above

Q: Gross income derived from business shall be equivalent to gross sales less sales returns, discount…

A: Sales return: when the sold item being returned by the customer to the seller. It is known as sales…

Q: Net income equals: Select one: a. Assets minus liabilities. b. Cash receipts minus cash payments.…

A: There is a multistep income statement model to record the revenue and expenses. As per this…

Q: Which of the following is NOT a reason why cash flow may not equal net income? a. Capital…

A: The relationship of cash flow with net income is  Cash flow =net…

Q: Which of the following returns is consistent with contractual cash flows that are solely payments of…

A: IFRS 9 provides guidance of SPPI. The SSPI test decides that whether financial instruments are…

Q: Which of the following transactions violates the balance sheet equation? (check all that apply)…

A: Balance sheet is a financial statement which presents the balances of assets, liabilities and…

Q: In a multiple-step income statement, interest expense usually is not classified as an operating…

A: A multi-step income statement is the type of income statement that presents revenues and expenses as…

Q: Which of the following should be subtracted from net income in computing net cash flows from…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in statement of cash…

Q: Which of the following journal entries would decrease Shareholders' equity? Multiple Choice Debiting…

A: Shareholders' equity would be decreased due to expenses, losses, or withdrawals and increases due to…

Q: Which of the following statements is true about the Days' Cash on Hand ratio? a.It is not useful in…

A: The company would calculate its cash on hand ratio by dividing the cash and cash equivalent by the…

Q: If the indirect method is used to calculate net cash provided by operating activities, adecrease in…

A: Cash flow statement: To know the cash position in the organisation statement of cash flows is…

Q: . Which statement is incorrect? Under cash basis of accounting, A. the matching principle is…

A: There are two types of accounting methods that are accrual and cash basis methods.

Q: Which of the following adjustments would NOT be made to net income when computing cash from…

A: Introduction: Statement of cash flows: All cash in and out transactions are recorded in statement of…

Q: Which information is not needed in preparing an income statement? cash from sales electricity bill…

A: The income statement is the part of the financial statement prepared at the end of the reporting…

Q: If a company prepares an Indirect Method Statement of Cash Flows, which of the following items is…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

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: Which one of the following is NOT an example of cash flow from operating activities? Select one: a.…

A:

Q: Which of the following statements are correct? I. A company's choice of accounting principles for…

A: Correct statement are as follows : I. A company's choice of accounting principles for financial…

Q: difference between the cash basis and accrual basis of accounting

A: In cash basis of accounting, receipts and payments are treated as income and expenses respectively.…

Q: Which of the following should be subtracted from net income in computing net cash flows from…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: Indicate the effect of the transactions listed in the following table on total current assets,…

A: Entry for Merchandise sold for cash is : Cash a/c Dr        XXX   To Sales a/c Cr  XXX

Q: Assume a company prepares the statement of cash flows using the indirect method. The company…

A: The cash flow statement is helpful for the stakeholders that they can identify the organization's…

Q: According to money measurement concept, which of the following will not be recorded in the books of…

A: According to Money Measurement Concept, Accounting records should only include those transactions…

Q: Using the indirect method, which of the following adjustments to convert net income to net cash…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

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: Indicate the effect of the transactions listed in the following table on total current assets,…

A: Merchandise is sold on credit: Due to selling on credit, debtors will increase. Therefore, current…

Q: Which item could normally be treated similarly under both cash basis and accrual basis of…

A: Cash basis of accounting is a system in which all revenues and expenses in cash are recorded for…

Q: Which statement is incorrect? Under cash basis of accounting, * A. the matching principle is…

A: Accrual Basis Accounting means transactions are recorded at the time when it has taken place…

Q: Which sentence is incorrect? Select one: a. Cash-basis accounting is not in accordance with…

A: Accounting principles are rules and regulations that are followed in the preparation of fair and…

Q: To determine cash payments for merchandise for the statement of cash flows using the direct method,…

A: Cash flow statement shows all cash inflows and cash outflows of the business during the particular…