can you help me figure out this question QUESTION 6Select all of the statements that are true.O Net Income equals Assets minus Liabilities.O Net Losses decrease Retained Earnings.O Net Income decreases Retained Earnings.O Net Income increases Retained Earnings.O Net Income equals Revenues minus Expenses.When Revenues are less than Expenses, a Net Loss is reported.

Income is an excess of revenue over its expenses. It increases the retained earnings. If the…

QUESTION 6 Select all of the statements that are true. O Net Income equals Assets minus Liabilities. O Net Losses decrease Retained Earnings. Net Income decreases Retained Earnings. O Net Income increases Retained Earnings. O Net Income equals Revenues minus Expenses. When Revenues are less than Expenses, a Net Loss is reported.

QUESTION 6 Select all of the statements that are true. O Net Income equals Assets minus Liabilities. O Net Losses decrease Retained Earnings. Net Income decreases Retained Earnings. O Net Income increases Retained Earnings. O Net Income equals Revenues minus Expenses. When Revenues are less than Expenses, a Net Loss is reported.

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...

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LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.
QUESTION 24 Which of the following is an incorrect statement? Income - Expenses = Operating Incom Current Assets - Current Liabilities = Net Working Capital Net Profit = EBT - Taxes Operating Income - Interest PMT = Gross Profit Expenses = CGS + Operating Expenses
QUESTION 27 The major accounting difference between interest expense for creditors and dividends declared and paid to shareholders is that interest expense: decreases retained earnings and dividends increase retained earnings. impacts cash flows, while dividends do not. is not on the income statement while dividends declared and paid are. is on the income statement and dividends declared and paid are not.
6. RequiredState whether each item is reported:1. in the statement of financial position2. in profit or loss in the statement of profit or loss and other comprehensive income3. as other comprehensive income in the statement of profit or loss and other comprehensive income4. in the statement of changes in equity5. in the notes to the financial statements.Item How item shown in financial statements(a) loss on revaluation of availablefor-sale investments(b) finance expenses(c) aggregate dividends declared and paid during the year(d) revaluation loss on building (not reversing any previous revaluation)(e) allowance for doubtful debts(f) transfer from retained earnings to general reserve(g) contractual commitments under an operating lease(h) deferred tax liability
9. The accounting equation is least accurately stated as: ending retained earnings = assets - contributed capital - liabilities. assets = liabilities + contributed capital + beginning retained earnings + revenue - expenses - dividends. owners' equity = liabilities - assets.
10. Accounting treatment of prepaid expenses will be: a. Deducted from assets b. Deducted from the expense in income statement c. Added in liabilities d. Added to that expenses in income statement
Owner's equity Select one: a. The resulting amount when total liabilities are subtracted from total assets b. When total liabilities are added to total assets c. None of Them d. The resulting amount when total revenue are subtracted from total cost of sales
Which of the following statements concerning retained earnings is true?a. Retained earnings is the difference between revenues and expenses.b. Retained earnings is increased by dividends and decreased by net income.c. Retained earnings represents accumulation of the income that has not been distributed as dividends.d. Retained earnings is reported as a liability on the balance sheet.
. RequiredState whether each item is reported:1. in the statement of financial position2. in profit or loss in the statement of profit or loss and other comprehensive income3. as other comprehensive income in the statement of profit or loss and other comprehensive income4. in the statement of changes in equity5. in the notes to the financial statements.Item How item is reported in financial statements(a) contingent liabilities(b) the effect on retained earnings of the correction of a prior period error(c) cash and cash equivalents(d) capital contributed during the year(e) revaluation gain on land (not reversing any previous revaluation)(f) judgements that management has made in classifying financial assets(g) income tax expense(h) Provisions
Multiple choice: 1. Which of the following is incorrect regarding profit? A. Profit is measured only indirectly as an arithmetical difference. B. Profit increases equity. C. Profit is the excess of total income over total expenses. D. Profit is earned if total income is less than total expenses. 2. An increase to an account is recorded A. in the debit side of that account. B. in the credit side of that account. C. beside the account. D. in the side of that account that represents its normal balance.
1) On the Statement of Retained Earnings where does the Beg Balance of RE come from?2) Also regarding this financial statement, what is the purpose and reason for adding Net Income to the Beg Bal of RE?
Payment of a divdend will : A. Decrease net income B. Increase net income C. Decrease retained earnings D. Increase retained earnings.