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 Expenses

Q: The Business is in loss, when ________" a) Revenue exceeds Expenditure  b) Assets exceeds…

A: The Question has covered the concept of Loss. Note:- Since you posted multiple question we will…

Q: Expense is a decrease in owner's equity resulting from the operation of a business. Is it true or…

A: Given statement is: Expense is a decrease in owner's equity resulting from the operation of a…

Q: ____________________ is the income earned after other revenues are added and other expenses are…

A: For gross profit, Cost of goods sold is deducted from Sales Revenue. Income from operations means…

Q: A business will have Net profit in which of the following cases? O a. Expenses are less than revenue…

A: Solution:- Introduction:-  Net profit is one of the best way to identify or estimate of business…

Q: If revenue exceeds expenses for the accounting period being measured, then we say the company…

A: net assets: Total assets - Total liabilities net loss: Expenses > Revenues net increase: Increase…

Q: Which of the following statements is not true?   Expense is the amount incurred or paid in earning…

A: Expense: Amount spent for running business activities in return for some benefit.

Q: One of advantage of accounting rate of return, "lt is based on accounting profits which are subject…

A: Lets understand the meaning of accounting profit. Accounting profit is a profit which indicates the…

Q: n which of the following cases will the business have Net profit ? a. Expenses are less than revenue…

A: Solution: "Expenses are less than revenue" in this case business will have net profit.

Q: What is the name of the accounting concept in which revenue earned  during the accounting period…

A: An accrual is a journal entry that is used to recognize revenues and expenses that have been earned…

Q: Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does…

A: Income statement is a part of financial statements which is prepared at the end of accounting…

Q: 1. What are the two main parts of the body of the income statement known as? Expenses Capital Assets…

A: Lets understand the meaning of income statement. Income statement is a statement which shows the…

Q: Given the revenues and expenses of a business, net loss will result if: a. All the above situations…

A: Revenue means the amount earned by selling the goods or services. Expenses means the amount spent on…

Q: _________ is generally referred as a parameter to check/test the efficiency of the business concern.…

A: The primary objective to do business is to earn profit.

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: 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: Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does…

A: Net income is generated after analyzing revenues and expenses of the organization.

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: Explain “ACCRUAL BASIS” and “CASH BASIS” briefly with your own word by giving specific examples. If…

A: The accrual basis of accounting represents that the revenue and expenses would be recorded when it…

Q: The amount of assets consumed during the performance of business operations in a period while…

A:

Q: The income statement records all the revenues and expenses for a given period and shows whether the…

A: Income statement: It is a Financial statement that shows you how profitable your business was over a…

Q: one - Which of the following is the account group in which the expenses and losses of the business…

A: Extraordinary activities are the income or expense which is derived from a non business activity and…

Q: hich statement is false? *   Revenues and expenses result from regular activities of the business.…

A: Operating activities:Operating activities refers to basic activities performed by the business…

Q: Profit is the difference between? a. Assets and liabilities b. Assets and equities c. The assets…

A: Assets, liabilities, equity, incomes and expenses are important terms that are being used in…

Q: Depletion is: A revenue for the business A liability for the business An asset for the business An…

A: Depletion is an accounting and tax concept used most often in the mining, timber, and petroleum…

Q: me statement represents the basic accounting equation. True or false?

A: Solution: Basic accounting equation is that Assets are equal to the sum of Liabilities + equity.…

Q: Which of the following is NOT true of revenue expenditure? It is an expenditure that keeps an asset…

A: Revenue expenditure is considered as a short-term expense while capital expenditure is long-term i.e…

Q: Which statement is incorrect? * A.the FUNCTIONAL Income Statement classifies expenses into cost of…

A: Income statements determine the net income of the entity and its included revenue and gains, expense…

Q: If a business earns a Net Income it means: * O Capital > Revenue Revenue Expenses

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

Q: Which one of the following states that the life of a business can be divided into equal time…

A: Business is assumed to be going for an endless period of time. Therefore, the period is divided into…

Q: When is revenue recognized by service provider? By a merchandiser? By a manufacturer? Differentiate…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: An accountant must be familiar with the concepts involved in determining earnings of a business…

A: Since you have posted a question with multiple subparts, we will solve first three subparts for you…

Q: Income from operations will always result if a. revenues exceed operating expenses. O b. gross…

A: 25) Income from operation will always result if- the cost of goods sold exceeds the operating…

Q: Which statement is incorrect? A. The FUNCTIONAL Income Statement classifies expenses into cost of…

A: Financial statement: Financial information is a written record of an organization and individual…

Q: Factors that reflect the ability of a business to pay its debts and earn a reasonable amount of…

A:

Q: When the business collects Revenues, the result is

A: When business collects revenue, the entry is; Cash A/c        Dr   xxxx      To Income A/c      xxxx…

Q: Can a business earn a gross profit but incur a net loss?

A: Gross Profit is computed by deducting cost of goods sold from the sales revenue of the business. And…

Q: The expense recognition principle matches Select one: a. expenses with revenues. b. creditors with…

A: General accepted accounting principles means those set of standards which is followed while…

Q: What an organization generates from activities, other than its primary business activity, will be…

A: Income statement is a financial statement which shows profit earned by a entity. Income statement…

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: Identify which one of the following formula is used to calculate the net income of the service…

A: NET INCOME= REVENUE - EXPENSES.

Q: Account which shows Gross Profit or Gross Loss of the business is called: Profit and Loss Account…

A: Trading Account is a part of financial statements of a company which shows the results of buying and…

Q: How a profit is determined a) under the cash basis of accounting and b) the accrual basis of…

A: a) Under cash basis of accounting revenues and expenses only includes where there is a cash exchange…

Q: Net loss: O A. Decreases equity. O B. Equals assets minus liabilities. O C. Represents the amount of…

A: The equity includes the capital that relates to shareholders.

Q: Essay - cite sources: Besides earning a profit, what other objectives might a business have? How…

A: Profitable businesses sometimes go under because they don't remain competitive or advance with the…

Q: Question 2 Which of the following is not a purpose of the income statement? O used to evaluate…

A: