Which of the following equations is false? a. Net Income = Gross Profit – Operating Expenses b. COGS = Cost of Goods Available for Sale – Ending Inventory c. Sales Revenue – COGS – Operating Expenses = Net Income d. Net Income = Operating Expenses + Gross Profit 3. Pinkan Company sells merchandise to Castle Corporation with terms FOB Shipping Point. In this case, the freight cost will be paid by … a. Pinkan Company b. Castle Corporation c. Shipping Company d. Pinkan Company and Castle Corporation

Q: What is the effect on net income if a company failed ro record a purchase in transit (FOB shipping…

A: Purchase in transit (FOB shipping point) means that where buyer become the owner of the goods at the…

Q: How to calculate the gross profit for merchandise business? A. Total Sales minus all the operating…

A: The Gross profit is the excess of revenue over the cost of goods sold. It is the amount available…

Q: Statement 1: Companies must allocate the cost of all the goods available for sale (or use) between…

A: Companies must allocate the cost of goods available for sale or use between income statement and…

Q: Pre b. To determine sales revenue d. Inventory does not affect net income To determine cost of goods…

A: Since you have asked multiple questions, we will solve the first one for you. If you want any…

Q: 1.Which of the following represents the actual cost of merchandise that the company was able to sell…

A: Since you have asked multiple questions, we will solve the first question for you . If you want any…

Q: Presented here are the components in Crane Company’s income statement. Determine the missing…

A: Introduction: In income statement, net income is calculated as under: Sales Revenue Less: Cost of…

Q: What does the debit remainder of the Trade Goods Account show in the perpetual inventory method ?…

A: All the options are explained as under: 1) Cost of available goods:      Cost of available goods…

Q: Assuming that Merchandise business use multiple step income statement. Which of the following will…

A: The financial statement prepared to show the income earned and expenses incurred is known as income…

Q: True False 1. During a period of rising costs, the LIFO cost flow assumption results in lower cost…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: If the dollar amount in ending accounts payable is greater than the dollar amount in beginning…

A: Solution- Accounts payable are amounts due to vendors or suppliers for goods or services received…

Q: The following are the components in Cullumber Company’s income statement. Determine the missing…

A: Solution:   Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income (a)…

Q: Below is a table identifying all the accounts in the Cost of Goods Sold Section of the Profit and…

A: Net Purchases = Purchases - Purchases Returns Cost of Goods available for sale = Opening stock + Net…

Q: Which of the following are the suppliers of goods/services whose invoices have not yet been paid? a.…

A: Accounting can be done in  both cash and accrual method

Q: 1. In a merchandising business, operating income plus operating expenses is equal to a.cost of…

A: Hey, Since there are multiple questions posted, we will answer first question. If you want any…

Q: Which of the following statements is NOT true

A: Answer:   Option c.

Q: Under the perpetual inventory system, the Cost of Good Sold account is recorded … a. When purchases…

A: Perpetual Inventory System:- It is a system in which inventory gets recorded continuously and…

Q: Which of the following accounts is not included in inventory? a. Raw material b. Team c. Finished…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 6. Which of the following must be part of the cost of inventory? a. Transportation cost paid for the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Determine the missing amounts.

A: Income statement:   It is a financial statement prepared by a company that reports revenues and…

Q: Gross income derived from business shall be equivalent to gross sales less sales returns, discount…

A: Formula: Gross income = Net sales - cost of goods sold Deduction of cost of goods sold from Net…

Q: Gross profit is calculated as the difference between net sales revenue and​ ________.         A.…

A: Revenue- Revenue refers to the quantity of cash that a corporation actually received during the…

Q: The major revenue of a merchandiser is while the major expense(s) is(are) sales revenue, cost of…

A: Sales - Sales is Revenue for the company. It can earn by the company through cash or credit. Cost of…

Q: . Net income plus operating expenses is equal to (assume there are no other income and expenses). a.…

A: Solution: 16 Cost of merchandise sold is equal to Net Income minus Gross Profit Cost of goods…

Q: Walmart takes its net sales and subtracts the cost of goods sold during the previous period. The…

A: When the cost is deducted after the production and selling of the product, a profit is obtained…

Q: Presented below are the components in Metlock, Inc.'s income statement. Determine the missing…

A: Gross profit = Sales - Cost of goods sold Net Income = Gross profit - Operating Expenses

Q: Which of the following statement is FALSE for Merchandise inventory of the Business? a. It is a…

A: Merchandise inventory is classified as a current asset on the balance sheet. Assets normally have a…

Q: What is the term applied to the excess of revenue from sales over the Cost of Merchandise Sold? a.…

A: Revenue from sales represents the amount of revenue recognized from the sales made during a…

Q: 55. Why is inventory, end is included in the computation of net income? * O A. To determine cost of…

A: Solution: Cost of goods sold = Beginning inventory + Purchases - Ending inventory Inventory, end is…

Q: True or false 1. Net sales is equal to sales revenue plus sales returns and minus sales discounts 2.…

A: The statement of cost of goods sold is prepared to record the cost of goods sold during the period.

Q: (Inventoriable Goods and Costs) Presented below is a list of items that may or may not be reported…

A: Given below is the name of item of financial statement and financial statements in which it is…

Q: Write if the statement is C if the statement is Correct and I if the  statement is Incorrect. Write…

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

Q: Assuming that Merchandise business use simple step income statement. Which of the following will be…

A: THE EQUATION USED IN A SIMPLE STEP INCOME STATEMENT : TOTAL REVENUE = (REVENUE + GAINS) TOTAL…

Q: TRUE OR FALSE 1. According to PAS 2, inventories are measured at net realizable value. 2. According…

A: Inventories are measured at the lower of cost and net realizable value.  NRV is not fair value less…

Q: 2. Determine cost of goods sold if the company uses a LIFO periodic cost flow assumption. 3.…

A: Inventory is one of the important current asset being held by the business. There are several…

Q: Which of the following statement is False for Multi-step income statement of a merchandise business?…

A: Net income is referred to the income earned by an organization or an individual proprietor after…

Q: Which of the following statement is False for a Simple-Step Income Statement? a. Total expenses…

A: An income statement is one of the financial statements of a company which is prepared at the end of…