Answered: Net Income or Net Profit a.Net Income…

Net Income or Net Profit a.Net Income is less than Net Profit b.Are the same c.Net Profit is the profit before expenses are deducted d.None of these choices are correct.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 1TF: LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating...

See similar textbooks

Related questions

Q: Accrued revenues represent revenues ?received after they are earned False

A: Solution: Accrued revenues are revenues that are earned but yet not received. These are shown as…

Q: The increase in expenses and decrease in payables should be debited* O True O False

A: Expense accounts normally have debit balance and all payables normally have credit balance. For…

Q: By matching revenues and expenses in the same period in which they incur A. net income or loss will…

A: As per matching concept expenses or revenue and expenses should be recognized in the period in which…

Q: Please explain the meaning of the following statement, I don't understand. The income reports net…

A: Income: It is often defined as the amount that is generated by a business from performing its…

Q: Which of the following equations expresses the definition of “income”? Choices; Income = Revenues…

A: Revenues - It is the amount of money received through sale of goods and services . Gains - It is the…

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 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 of the following accounts was created as the result of an accrual for expenses? Group of…

A: Lets start with the basic understanding. Accrual for expense is a liability which is incur because…

Q: Which of the following doesn't correctly describe a journal entry which debits rent expense and…

A: The asset and expenses have the debit balance and liabilities and revenue have credit balance.

Q: 11. In the preparation of the worksheet, if the total credits are greater than total debits under…

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

Q: Accounting for all possible losses and expecting no profit is as per O a. Revenue recognition…

A: Answer : Option (C ) conservatism Principle

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

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

Q: matching revenues and expenses in the same period

A: Matching concept is a fundamental concept in accounting. According to this concept, revenues and…

Q: Net income and earnings are the same thing and are the bottom line of the income statement. True or…

A: Income statement is the summary of revenue and expenses of the company for a particular period. The…

Q: Expense and loss are the same. Net loss is a deficit or negative figure in the net income lin

A: No expense and loss are not the same. Yes net loss is shown as a negative figure (in brackets) in…

Q: Revenue Expenditures are Select one: O a. Expenses are shown in Balance Sheet O b. No direct effect…

A: Revenue Expenses: Revenue costs are listed in the revenue statement, which is part of the financial…

Q: If total expenses exceed total revenue a net loss is reported on an income statement Select one:…

A: Net Income in the income statement is the residual income attributable to share holders Net income…

Q: The increase in expenses and decrease in payables should be debited O True O False

A: While recording any business transaction in accounting form we enterd this amountin two side one is…

Q: Which of the following are NOT examples of selling expenses a.Insurance Expense b.Sales Salary…

Q: What is the effect of omission of accrued income in retained earnings at the end of year 2? a.…

A: A basic Accounting equation is given as under; Assets = Equity + Liabilities Meaning, Total…

Q: An accrued expense amounting rm18000 was not recorded when ascertaining the profit year. The effect…

A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.

Q: Review Marketin Write the letter of the term that best will not be used. 1. The amount of money…

A: Hi student Since there are multiple questions, we will answer only first question. Since first…

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 of the following statements is correct? Options: • The net income would still be the same…

A: The accrual basis of accounting is the method under which the income earned and expenses incurred is…

Q: What is the effect of overstating the accrued utilities at the end of period? overstated expense…

A: Overstating accrued utilities at the end of period means expenses and related liability are recorded…

Q: Matching concept does not include one of the following: a. The revenues of a particular period…

A: Accounting principles are the principles based on which accounting rules are set. Lets understand…

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: What is the impact on profit for the year if income overstated? a. no effect b. profit will be…

A: Lets understand the basics. If there is error in recording the transaction then adjustment needs to…

Q: The calculation of Operating profit does not include the following item: a. Direct expenses O b.…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: Multiple choice: 1. Which of the following is incorrect regarding profit? A. Profit is measured only…

A: Profit is an excess of revenue over the expenditure and it can be measured by preparing the income…

Q: When revenue equals expenses, the result is : A)Loss B)Profit C)Zero cash balance D)No profit no…

A: Total sales is also known as Revenue

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: The concept of materiality: a Treats as material only those items that are…

A: The materiality concept in accounting states that all the items that are material to the company…

Q: Owner's equity Select one: a. The resulting amount when total liabilities are subtracted from total…

A: We know that the accounting equation is Assets = Liabilities + Shareholders Equity That is we can…

Q: What is the accounting treatment for discontinued operations? A : It is reported at its gross…

A: In the today's world, it is possible that an entity of group is not earning profit due to several…

Q: Revenue Expenditures are Select one: O a. Short-life and must always be replaced to generate revenue…

A: The expenditures can be defined as revenue and capital expenditure.

Q: In income statement columns of the worksheet, when total credits exceed total debits, there is * O…

A: The income statement shows the net income earned by the company. Debits of the income statement show…

Q: Revenue Expenditures are Select one: a. None of the these b. No direct effect on profit c.Expenses…

A: Revenue expenditures means those expenditure which is incurred for very short period of time and the…

Q: Which of the following item should not appear in the Income Statement (Profit and Loss Account):…

A: Income statement also known as the profit and loss account shows the expenditures and income of the…

Q: What is the liability created by receiving revenue in advance called (before it is actually earned)?…

A: Revenue receipts in Advance is shown as unearned revenue.

Q: Which statement is not true about accrual and deferral? A. A deferred income is an amount collected…

A: Accruals: Accruals are the revenues that are earned but not received, and expenses that are incurred…

Q: Which situation indicates loss on the income statement a. Total debits exceed total credits b.…

A: Income statement is a statement show the gross profit and net profit earned by comparing the sales…

Q: 4. Determine the difference in the amount of income that the company would have reported it it had…

A: Working note 1: Compute the value of ending inventory under the FIFO method. FIFO…

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: Which of the following accounts have a debit normal balance? Select one: a. Dividends Payable b.…

A: Ans. b Salaries expense

Q: Transactions that affect inventories on hand have an effect on both the Statement of Financial…

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

Question

Net Income or Net Profit

a.Net Income is less than Net Profit

b.Are the same

c.Net Profit is the profit before expenses are deducted

d.None of these choices are correct.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following accounts would not be reported under revenue on a simple income statement? A. interest revenue B. net sales C. rent revenue D. operating expenses
Please explain the meaning of the following statement, I don't understand. The income reports net income or net loss that is equal to total revenues and gains, less total expenses and losses or the amount of income or loss that is left after total expenses have been deducted from total income.
In profit and loss account, if debit is more than the credit, the difference is [A] net profit [B] net loss [C] gross profit [D] none of the above
Unearned income is credited to the Profit and loss account. Do you agree with the statement?
QUESTION How much shall be presented as profit/loss on the face of the income statement? USE NEGATIVE SIGN IF LOSS
Which of the following statement is False for a Simple-Step Income Statement? a. Total expenses cannot be calculated b. Net Sales can be calculated c. Net Profit can be calculated d. Cost of goods sold will be taken under total expenses
Which of the following equations expresses the definition of “income”? Choices; Income = Revenues – Expenses Income = (Revenues + Gains) – (Expenses + Losses) Income = Revenues + Gains Income = Gains – Losses
Which situation indicates loss on the income statement a. Total debits exceed total credits b. Total credits exceed total debits c. None of the choices d. Total debits equal total credits
By matching revenues and expenses in the same period in which they incur A. net income or loss will always be underestimated B. net income or loss will always be overestimated C. net income or loss will be properly reported on the income statement D. net income or loss will not be determined
Which of the following statement is False for a Simple-Step Income Statement? a. Net Profit can be calculated b. Cost of goods sold will be taken under total revenue c. Selling expenses will be calculated under total expenses d. General and Administration expenses will be taken under total expenses
Which of the following statements is correct? Options: • The net income would still be the same regardless of accounting method that is used whether cash basis or accrual basis • Pre-collections initially recorded as income will overstate the profit at the end of the accounting period if no adjustment is done for unearned portion • Deferral is intended to recognize income earned but not yet received • Accrual of expenses will increase the expense element and will correspondingly decrease the liability
Gross profit is equal to Select one: a. revenues - expenses b. sales - cost of goods sold c. profits plus depreciation d. earnings before taxes minus taxes payable