The break-even point for a business is 0a.the point where income is equal to expenses. re prolitability COsts exceed revenue. Od the point when a business meets their profitability goals.
Q: When we reduce Total expenses from Revenue , the result is called as ........... a. Cost b. Revenues…
A: Revenues is the total receipts of the business irrespective of the cost incurred. Expenses are the…
Q: Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income.…
A: “Since you have posted a question with multiple questions, we will solve the first three questions…
Q: Company X is competing with company Y. These are their ratios: x y Profit Margin .144 .172 ROA…
A: Profit margin is the margin calculated by comparing the sale value with the cost associated with it.…
Q: The margin of safety can be defined as the amount by which sales can decrease before losses are…
A: Total sales of a company can be divided into Margin of safety sales and break even sales.
Q: Break-even analysis is concerned with determining a point at which the company can minimize total…
A: Breakeven analysis is very important done by management and cost accountants of the business. With…
Q: The equation for Net Income is "Net Income = Gross Profit - Operating Expenses." If you cut…
A: Net income is the amount earned after deducting the operating expenses from the gross profit.
Q: Which of the following may motivate managers to decrease the size of the allowance for doubtf Place…
A: Allowance for Bad debt is provision made for estimated uncollectible debt in the books of accounts.…
Q: If a company decreases the variable expense per unit while increasing the total fixed expenses, the…
A: Breakeven Point: The breakeven point is the level of creation at which the costs of creation are…
Q: Which of the following will decrease the length of the operating cycle? 1 Reducing the…
A: The answer is option D. All of the above.
Q: Let’s say that two firms, A and B have positive profit margins. B’s fixes costs as a percentage of…
A: Fixed costs are expenses that do not change based on production levels; variable costs are expenses…
Q: What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: What is the financial impact on a company when a customer returns a product for a refund?a. Sales…
A: Sales return: It can be defined as an event where customers return the goods previously purchased…
Q: Revenue? (a) Is a decrease in shareholders’ equity (b) Is cost of business (c) Has no…
A: When there is an increase in the revenue, there would be an addition to the retained earnings and…
Q: If the amount of contribution margin is not enough to cover all fixed expenses, the business will…
A: Contribution is the amount which is obtained after deducting the variable costs from sales.
Q: The break-even point is the sales level at which a company neither earns a profit nor incurs a loss…
A: The break even sales units are calculated as fixed cost divided by contribution margin per unit.
Q: Margin of Safety (MOS) in dollars indicates how much sales must decrease before the company will be…
A: Margin of safety is the excess of actual revenue over its break even revenue.
Q: gross profit margin (gross profit/sales) is an important determinant of NOPAT. identify two factors…
A: Gross profit: Gross profit is a profit for a company arrived after deducting cost associated with…
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: Comparison: 1. Observe the trend of revenues for both companies. Which company has higher revenue?…
A: solution:- Introduction:- Trend analysis shows changes in the amounts of corresponding financial…
Q: a. Determine whether Excelsior obtain profit or incurred a Loss. b. If you were the CEO of Excelsior…
A: Financial Statements are the statements which records the business activities and shows the overall…
Q: In these days Banks have new competitors from many industries; they all have one thing in common,…
A: The term banks is very wide scope . Banks are those institutes which deposits the money of customers…
Q: if costs are two high: Select one: a. Company loses work b. Company loses money C. It means error in…
A: Costs denote the amount that a company spends on the creation or production of goods and services.
Q: 1 Ifa company decreases the variable expense per unit while increasing the total fixed expenses, the…
A: 1. FIXED EXPENSES ARE THOSE EXPENSES THAT REMAIN CONSTANT FOR A PERIOD OF TIME IRRESPECTIVE OF THE…
Q: S1 - Net income remains the same when revenue is treated as other income, additional revenue,…
A: Solution : Concept Net income is calculated after deducting all the expenses incurred from all the…
Q: Fill in the blank/s: A company’s __________ function is the money generated by selling x units of…
A: Income statement shows the financial performance of the business entity by deducting expenses for…
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: Profitability is a measure of an organization's profit relative to its expenses. Organizations that…
A: Profitability is one of the performance measurement factors. It shows the overall performance of the…
Q: Which of the following statements is correct?a. Sales returns and allowances increase a company’s…
A:
Q: Which situation here might indicate a company has a low quality of earnings? The same accounting…
A: Quality of earnings represents the earnings of the company in proportion to the operating activities…
Q: Steadily increasing cost of goods sold as a percentage of net revenues is an indication ofa.…
A: Answer: a. decreasing earnings quality.
Q: The statement above is best completed by the answers in row: Row ii the company company breaks even…
A: The question is based on the concept of a two-dimensional graph and its interpretation. X-axis and…
Q: What type of cost includes product ingredients and materials? a. fixed c. total b. revenue d.…
A: Hi student Since there are multiple questions, we will answer only first question. Cost accounting…
Q: Increasing earnings quality could be indicated bya. an improving operating earnings/sales ratio.b. a…
A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…
Q: When a business has made enough money to pay its costs and begin to make a profit
A: Cost is the amount that is incurred in the production process of the company. Whereas, profit…
Q: The method of comparators can be applied using the ratio of operating income to revenue as a basis…
A: Operating Income is an accounting number that measures the amount of operating profit for a company…
Q: REQUIRED:: Calculate the following Ratios: a) Gross Profit Margin b) Net Profit Margin c)…
A: Gross profit margin Gross profit / Net Sales * 100 Net profit margin Net profit / Net Sales * 100…
Q: mparison: 1. Observe the trend of revenues for both companies. Which company has higher revenue? 2.…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: 2. The objectives of Working Capital management is not to have a proper balance between different…
A: working capital in order to run the day today operation of the business this is calculated by…
Q: The break-even point is the point in the volume of activity where the organization's revenues and…
A: Break even point is a point used in cost accounting to evaluate the relationship between costs and…
Q: A business that is below the operating break-even point:
A: The operating break even point for a business is the point at which sales revenue covers all of the…
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: A company can increase its return on assets by doing which of the following: O a. Decreasing…
A: Return on assets = Net Income / Total assets Decreasing expenses while maintaining revenues:…
Q: Which of the following is an indication that a company may be recognizing revenue prematurely?…
A: Company may be recognizing revenue prematurely. relative to meets competitors due to receivables…
Q: he equation for Net Income is "Net Income = Gross Profit - Operating Expenses." If you cut operating…
A: Net income is income available after the deduction of operating expenses.
Q: Required bad de outstandan 1. Prepare an income statement for the Markert Company for each year…
A: Step 1 Timing of revenue recognition is based on cost incurred and cash collected.
Business number 20
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- a. What is your company’s primary revenue, secondary revenue, and gains? b. What is your company’s primary expenses, secondary expenses, financial activity generated expenses, and losses? c. What is the revenue trend? Does the 10-K or 10-Q discuss primary revenues, as well as other revenue types? d. What do the accounting policies say in the annual report (footnotes) regarding the cost of revenue? What are the drivers to the cost of revenue and the trends?We can say that the business is in profit, when: Select one: a. Income exceeds Liabilities b. Assets exceed Expenses c. Income exceeds Liabilities d. Income exceeds ExpensesIn which of the following cases will the business have Net profit ? a. Expenses are less than revenue b. Expenses are greater than income c. Expenses are equal to income d. Liabilities are greater than income
- a. What do the accounting policies say in the annual report (footnotes) regarding the cost of revenue? What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and marketing expenses or research and development? Are these amounts reasonable for the type of business? c. Compare general and administrative expenses to similar companies. Are they reasonable? d. What is the ratio of net interest income (expense) to income from operations? Is this a safe ratio for the company? Why or why not?a.What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and marketing expenses or research and development? Are these amounts reasonable for the type of business? c. Compare general and administrative expenses . Are they reasonable? d. What is the ratio of net interest income (expense) to income from operations? Is this a safe ratio for the company? Why or why not?Factors that reflect the ability of a business to pay its debts and earn a reasonable amount of income are referred to as solvency, profitability, and liquidity. O True False 00
- Answer this questions: 1. If the revenue is Php 94,810 and total expenses are Php 80,537, what is the net income? 2. If sales are equal to Php 600,480 and the costs of goods sold is equal to Php 374,789, what is the gross profit/margin? 3. If the company B has Php 1.048,150 liabilities, how much is its equity? 4. Given the following information, compute for the operating profit/margin: GROSS SALES: Php 600,480 COSTS OF GOODS SOLD: Php 374,789 TOTAL OPERATING EXPENSES: Php 132,916 5. A company's total investements Php 1,500,000. If Return on Investments is 35% , how much is the net profit after taxes?Given the revenues and expenses of a business, net loss will result if: a. All the above situations will result in net loss. b. Total revenue exceed the total expense c. Total expenses exceed the total revenue d. Total expenses equal to total revenueREQUIRED:: Calculate the following Ratios: a) Gross Profit Margin b) Net Profit Margin c) Current Ratio d) Quick Acid Ratio e) Inventory Turnover Ratio (Days) f) Accounts Receivable Turnover Ratio g) Accounts Payable Turnover Ratio h) Debt ratio i) Return on Assets b) Explain the limitation of ratio in a business
- How do you find the profit margin when given this information? Revenue: $1000 Expenses: $900 Total Assets: $1500 Total Liabilites: $500 Is there a specific formula?If a business received $2,000.00 from sales, this would ____. a. increase assets and increase owner's equity b. increase assets and decrease liabilities c. increase liabilities and decrease owner's equity d. decrease assets and decrease owner's equityAnswer the question and explain why did you pick this answerComparison:1. Observe the trend of revenues for both companies. Which company has higher revenue?2. Observe the gross margin for both companies. Which company is more profitable?3. Observe the operating expenses for both companies. Which company has more operating expenses?4. Observe the net income for both companies. Which company is more profitable?5. Which company is more profitable using this type of analysis?