When selecting a presentation format for the statement of profit or loss and other comprehensive income, management must select the one that is: Select one alternative: most reliable most relevant and the most reliable most relevant most consistent

Q: What formula is used to determine net profit

A: Net profit is the actual income earned by an organization after paying all the expenses. It is…

Q: Prepare a common size statement of profit and loss and balance sheet.

A: Common-size analysis shows the proportion of a total group or sub-group. An item of a particular…

Q: According to our authors, define and provide an example of “comprehensive income.”

A: Comprehensive Income: The term "comprehensive income" refers to the combination of "net income" and…

Q: From the above information, prepare a detailed statement of profit or loss for internal use, and a…

A: Profit and loss Account The purpose of preparing the profit and loss account to know the actual net…

Q: The following are investment criteria: net present value, payback, profitability index, average…

A: The question is based on the concept of capital budgeting techniques , to ascertain the true worth…

Q: explain why an analyst attaches great importance to evaluation of the income statement

A: Meaning of Income statement- Income statement is one of the financial statements prepared by…

Q: The normal ordering of items in the income statement would be best illustrated by which of the…

A: INCOME STATEMENT IS ONE OF THE FINANCIAL STATEMENTS IF THE COMPANY WHICH SHOWS THE REVENUE'S AND…

Q: Discuss the components of operating and nonoperating income and theirrelationship to earnings…

A: Meaning of Operating Income Operating Income is also known as Earnings before interest and taxes. It…

Q: Requirements: Comprehensive income and financial position.

A: Financial statements are those statements and reports which are prepared at the end of accounting…

Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…

A: Unrealized profit is the part of profit which is not realized till the end of the accounting year.…

Q: Explain and evaluate the eff ects on financial statements and ratios of capitalizing versusexpensing…

A: Capitalizing Costs: When any cost is incurred with respect to any asset which will provide long-term…

Q: Which of the following facilitates the comparison of financial performance with one period to…

A: Financial performance can be compared if the business uses same policies and methods in all the…

Q: What element should be assessed when considering the quality of profit and loss and balance sheet.

A: The elements are as follows: Leverage is a measurement of the business's ability to meet long-term…

Q: The elements that are directly related to the measurement of profit are assets, liabilities, and…

A: The profit is recognized by an entity at the instance where the assets are increasing, or the…

Q: Explain the difference between profit and profitability.    Explain the concept of going concern…

A: Following are the difference between profit and profitability: Profit is an absolute figure that…

Q: Describe ratios that are used in profitability analysis.

A: Profitability ratios are a class of financial metrics that are used to assess a business's ability…

Q: Comparative Profit and Loss Statement:

A: Joint costs are costs incurred up to the point of separation of Products. In this case, joint costs…

Q: Explain profit-and-loss statement?

A: For financial reporting, there are three major financial statements which a business entity is…

Q: explain how the idea of value creation under stakeholder theory differs from that under positive…

A: Here discuss about the details of the difference between the stakeholders theory with the positive…

Q: In accordance with U.S. generally accepted accounting principles, which translation combination is…

A: If the U.S dollar is the functional currency of the subsidiary company then the temporal method as…

Q: . Distinguish between the modified all-inclusive income statement and the current operating…

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

Q: Why it is important to develop your skills in preparing statement of comprehensive income?

A: Statement of comprehensive income is the detailed income statement which shows all incomes and all…

Q: Chowderhead Industries has asked how other comprehensive income issues should be presented in their…

A: The company prepares this financial statement for the investors or readers of the financial…

Q: Which of the folowing would be considered an Other Comprehensive income item Ganon dholof dcartinued…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: A company’s current fi nancial position would best be evaluated using the:B . income statement.

A: Financial position of the company is very much important especially for investors to make their…

Q: In a restated set of financial statements prepared in accordance with the current cost accounting,…

A: Realized gain is the gain on sale of the asset where its cost price is less than the selling price.…

Q: Fair value is a more relevant measure to use in Financial Reporting than Historical Cost. Discuss

A: Introduction: Fair value accounting refers to the practice of valuing your company's liabilities and…

Q: Which of the following is the major independent variable in constructing pro forma income statements…

A: Proforma income statements is a projected statements which says about budgeted income and expenses…

Q: how value drivers (Return on Equity, Net Profit Margin, and Total Asset Turnover) are related to…

A: Financial statements: Financial statements are the summary of transactions presented in the form of…

Q: Identify at least two situations in which important changesin value are not reported in the income…

A: Definition:

Q: describe, calculate, and interpret comprehensive income;

A: The income statement is considered an important financial statement as it helps in order to get the…

Q: Discuss the impact of the following ratios and usefulness to users of financial statements. Gross…

A: Gross profit margin is the margin ratio calculated to help the users of financial statement…

Q: What is Pro forma (or projected) profit-and-loss statement?

A: Pro Forma financial  Statement (also called as pro forma profit and loss) means that however the…

Q: What qualitative characteristic defines, the underlying influence in the preparation of financial…

A: Going concern represents that the company would prepare its financial statement with the intention…

Q: outline and describe the main components of income statement that analysts should consider in their…

A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization…

Q: Advantages and Disadvantages of Reporting Items in Other comprehensive income instead of on the face…

A: Other Comprehensive income: OCI includes all financial items which result in changes in the…

Q: In 'Percentage of Sales' method of preparation of Pro-jected Financial Statements, the Operating…

A: Operating expenses should be projected on the basis of Cost of Goods sold  Cost of Goods sold =…

Q: Providing information to external users for decision making is the purpose of which of the…

A: Introduction: Financial statement: It contains all Assets and liabilities of the company. It tells…

Q: Choose acceptable income statement account names and describe the most frequent operational…

A: The Answer

Q: Identify and calculate the common ratios used to assess profitability.

A: Profitability ratios:   Profitability ratios are those ratios that helps a company to access the…

Q: Describe the common profitability measures.

A: Common profitability measures include profitability ratios such as ROE, ROA, profit margin etc They…