Why should inventories be included in (a) a statement offinancial position and (b) the computation of net income?

Q: Describe the content and format of the income statement.

A: Income Statement : Its also called as Profit and loss statement. This report shows the Incomes ,…

Q: Why is the income statement called the "profit and loss statement"?

A: Income Statement is called the profit and loss statement because it records all the incomes and…

Q: How to interpret an income statement?

A: Income statement: It shows all the income earned by the business and the expenses incurred during an…

Q: What is the fees earned and net income of this income statement?

A: Net income is the excess of revenue over expenses. Net income is calculated under income statement…

Q: What does the income statement report?

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

Q: What is the correct net income under the accrual basis of accoun

A: Two Methods: (1) Cash basis (2) Accrual basis. In cash basis income and expenditure are recorded as…

Q: In what situation will the unrealized holding gain or losson inventory be reported in income?

A:

Q: which of the following would be considered in the calculation of gross profit?  Sales and returns…

A: Gross Profit is the operating profit calculated by deducting the cost of goods sold from the revenue…

Q: What are the typical elements that are itemized in the income statement?

A: Income statement is a statement that helps in determining the income or the profit and loss of a…

Q: When are revenues and costs recorded in accrual accounting

A: The Answer

Q: Explain the difference between statement of financial position and statement of comprehensive…

A: The statement of comprehensive income represents the entity's financial performance (profitability)…

Q: Which of the following is not an element of the financial statements? Multiple Choice Net income…

A: Solution:- Introduction:- The following items is not a element in financial statements as follows…

Q: What basic characteristic distinguishes items reported onthe income statement from items reported on…

A: Balance sheet is the financial statement of a company. It helps in maintaining the records of…

Q: What information do we get from the income statement?

A: Income statement is a financial statement which is prepared on periodical basis along with Balance…

Q: Expenses on the income statement may be grouped by: A . nature, but not by function.

A: There are many ways in which income statement may be grouped. An income statement by nature is the…

Q: explain the purpose of the income statement and what information it contains. Give examples .

A: Every business operates for the purpose of results and profits. At the end of accounting period,…

Q: What is an income statement, and what information doesit provide?

A: A financial statement that comprises of all the records of money received as revenue and spent as…

Q: What is the basic equation underlying the income statement?

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

Q: What is an income statement? Explain the components (or equation) of the income statement.

A: Income statement:   The Income Statement is 1 of the 5 types of Financial Statements that report…

Q: Describe the format used to report the components of net income.

A: Net income: Net income is the excess amount of revenue after deducting all the expenses of a…

Q: income statement show

A: Income statement is a part of financial statements.

Q: Which are the Typical elements that are itemized in the income statement?

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

Q: What do I use in an Income Statement?

A: An Income statement is a part of the financial statements which shows the profits or losses earned…

Q: Where does the accrual accounting focuses?

A: Accrual basis of accounting: Accrual basis of accounting refers to recognizing the financial…

Q: What is the purpose of the income statement?

A: Financial statement: Financial statements are condensed summary of transactions communicated in the…

Q: What differentiates things reported on the income statement from those reported on the balance sheet…

A: The Answer

Q: How to compute the amount of net income or net loss

A: Net Income or net loss is computed by preparing the income statement.The first step in computing the…

Q: how is profit or loss calculated on an income statement?

A: Profit and loss is calculated as below-

Q: How does the income statement affect the balance sheet?

A: Balance Sheet: It is also termed as the Statement of Financial Position. Balance Sheet represents a…

Q: What is the purpose of arranging an income statement toshow subtotals for income from continuing…

A: Income statement is prepared to compute the total net profit or loss generated or incurred during an…

Q: What is meant by the terms elements and items as theyrelate to the income statement? Why might items…

A:

Q: When should an average amount be used for the numerator or denominator? When the denominator is a…

A: The average amount is used for maintaining the nearest accuracy of the financial ratio. It helps the…

Q: Explain the difference between gross income, gross profit, operating income and comprehensive…

A: Gross Income means the amount of the total revenue from sales of goods or provision of services.…

Q: How to balance income statement?

A: Financial statements refers to formal recording of financial position, performance, and financial…

Q: What is vertical analysis? What item is used as the base for the income statement? What item is used…

A: Financial Statement Analysis: Financial information of business is analyzed by the analysts,…

Q: Which of the following must be charged to the income statement?

A: Answer:   Option 4.

Q: How to find the net income? How to find the revenue expense?

A: Net Income Net Income is refer as the net profit or the profitability of the company. Net Income is…

Q: How is net income calculated? Define revenues and expenses?

A: Formula to calculate net income :Net income = Sales revenue + Interest revenue - (Total expenses +…

Q: Unearned income is credited to the Profit and loss account. Do you agree with the statement?

A: Unearned income is the revenue received in advance for services to rendered in future. For example,…

Q: If this information was used to prepare an income statement Net Income should be:

A: Net Income is the amount of profit/losses left in the business after deducting all non-operating…

Q: Define extraordinary items. How are extraordinaryitems distinguished from items that are presented…

A: Extraordinary items are those item that are unusual and that are not expected by the management of…

Q: What are the components of income statement?

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