Profit is the difference between? a. Assets and liabilities b. Assets and equities c. The assets purchased with the cash contributed by the owner and the cash spent to operate the business d. The assets received for goods and services and the amounts used to provide the goods and services

Q: Which financial statement shows the financial performance of the company on a cash basis?A. balance…

A: Financial statements are those statement or reports that are prepared at the end of accounting…

Q: Required: a) Prepare a statement of cash flows from operations for Neway Ltd. b) Prepare a statement…

A: Cash flow statement are prepared in order to ascertain the actual cash…

Q: Revenue and Expense Accounts Are revenue and expense accounts equal to equity in how cash is a part…

A: Revenue: Revenues are earnings of business by sale of goods and services in business. It is earned…

Q: Element of financial position is a)  Cash. b)  Interest

A: This is a multiple-choice question for elements of financial statement in which we have to choose…

Q: - How do businesses follow their profits arising from the sale of tangible fixed assets in which…

A: The correct option is  A) Other Income To Be Accounted

Q: According to which concept all the transactions are measurable in the terms of money are recorded in…

A: THE MONEY MEASUREMENT CONCEPTS STATES THAT ONLY THOSE ACCOUNTING TRANSACTIONS ARE RECORDED WHICH CAN…

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: At the time the transaction occurred, which of the following would result in an increase in net…

A: Basis of accounting is the methodology under which the revenues & expenses are acknowledged in…

Q: Which of the following would be classified as an investing activity on the statement of cash flows:

A: Cash flow Statement: It is one of the financial statements used by investors to know the movement of…

Q: When a business provides services for cash, what is the effect on the accounting equation are…

A: When a business provides services for cash, cash is increased and revenues are increased. Revenues…

Q: The percentage of credit sales approach is closely related to the: a.statement of retained…

A: The percentage of credit sales approach is used to estimate the expected bad debt expenses in the…

Q: What is the meaning of the term revenue? Does the receiptof cash by a business indicate that revenue…

A: Realization principle: It can be defined as a concept that is based on the rule that the revenue…

Q: An income statement is sometimes called thea. statement of financial position.b. owners’ equity…

A:

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: It represents the cash or other assets withdrawn from the business by the owner for the personal…

A: Dividends are distribution of profits of a company to its shareholders. Hence, option C is wrong.

Q: The financial statement that reports the revenue earned by the company is  the income statement the…

A: Lets understand basics. Revenue is a consideration received by the company for the supply of goods…

Q: One of the purposes of the statement of cash flows is to ________. A to calculate inventory…

A: Statement of Cash flow : It is one of the financial statements of the business and is prepared for…

Q: Considering the information shown on the financial statements,revenue could be calculated as:…

A: Introduction:- The following financial statements used as follows under:- Balance sheet. Income…

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: Instructions: Classify each transaction whether they are operating, financing or investing. After…

A: Statement of cash flows forms a part of financial statement of the companies and is prepared with a…

Q: The valuation method primarily used in the balance sheets of business entities is a. current exit…

A: Balance Sheet: It shows the financial position of the entity. All the assets and liabilities are…

Q: Depreciation is considered as accounting policy and operational expense for the accounting period.…

A:

Q: t is the amount earned by the business on the process of selling goods or performing services. a.…

A: Revenue means the amount earned by selling the goods or services. Unearned revenue means the amount…

Q: Revenues are normally considered to have been earned whena. All possibility of return has expired.b.…

A: Revenue Recognition: Revenue recognition refers to recording revenue in the books of accounts.…

Q: On which financial statement would the Supplies account appear? a. Statement of Cash flows b. Income…

A: Supplies: Supplies account is reported in the balance sheet when it is in the stock. When supplies…

Q: True or False?    The cash basis of accounting is a system in which revenues are recorded when…

A: PLEASE GIVE A LIKE, your response matters  Answer: correct option is "False"

Q: Under the cash basis of accounting, revenue is recorded       When earned       When realized…

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…

Q: what is an Income derived from the sale of goods or services in the normal course of business

A: In accounting terminology income is a part part of revenue. Revenue is the gross inflow of cash ,…

Q: Distributions that are paid to owners would affect both the a. balance sheet and statement of cash…

A: Distributions to owners in a sole proprietorship are drawings and in the case of the company are…

Q: 1. It is the worth of cash and other assets invested in the business 2. These are the resources…

A: SOLUTION-   AN ASSET   IS ANY RESOURCE OWNED OR CONTROLLED BY A BUSINESS OR AN ECONOMIC ACTIVITY .…

Q: itle What particular item of financial or operating data appears on both the income statement and…

A: Income Statement: It is a part of the books of a company and is a most important element because it…

Q: Does a statement of cash flows or an income statement best mea-sure the profitability of a…

A: Statement of cash flows: Statement of cash flows reports all the cash transactions which are…

Q: Which of the following transactions affects both the income statement and the balance sheet? O…

A: The income statement is prepared to record the revenues and expenses of the current period and…

Q: What is the owner’s right to the assets (claims to the assets) of the business called? Group of…

A: Solution: As per basic accounting equation: Assets = Liabilities + Owner's equity Therefore Lenders…

Q: Which of the following would be found on a company's income statement? I- cost of goods sold II-…

A: The financial statements consists of balance sheet, income statement and the cash flow statements.

Q: Solve the general ledger T-accounts. I need a cash, accounts receivable, inventory, land,accounts…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Identify each expense or revenue as a cash flow from operating activities (O), a cash flow from…

A: The above question relates to the identification of cash flow activities while preparing a Cash Flow…

Q: Which of the following has a different effect on net profit than it does on cashflow? A.Cash sale…

A: Net Profit will be affected by revenues and expenses whether accrual or cash basis. On the other…

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

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

Q: Where do accounts such as payables, cash, land, equipment, and retained earnings go on an income…

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

Q: The costs of doing business are classified as:a. assets.b. liabilities.c. revenues.d. expenses.

A: The correct option is option “d”. d. Expenses

Q: The income statement reflects which of the following? Choose one answer. Liabilities and revenue…

A: An income statement is a financial statement that shows you the company’s income and expenditures.…

Q: Which financial statement shows the financial position of the company?A. balance sheetB. statement…

A: The information contained in a company's financial statements serves as the basis for corporate…

Q: It represents the cash or other assets withdrawn from the business by the owner for the personal…

A: Drawings represents the cash or other assets withdrawn from the business by the owner for the…

Q: The main purpose of the statement of profit or loss is to determine O the amount of income and…

A: A profit and loss statement is a financial statement that is prepared so as to determine the…

Q: In which of the financial statements do Inventory and Cost of goods sold appear? A) on the balance…

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