BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

A music store sells new instruments. The store also sells used instruments for people who are willing to give the store part of the sales price. The sales of used instruments, called commissions, amount to about one-fourth of total sales. On the firm’s classified income statement under the Revenue heading are both New Instrument Sales and Sales Commissions. Comment on this practice.

To determine

Comment on the music store’s practice of recording the sales from new instruments and sales from used instruments under the Revenue.

Explanation

Income from operations: Revenue generated mainly from business operations, before taxes, other revenues and expenses, is referred to as income from operations.

Comments:

  • The bottom line of income statement which is the result of excess of earnings from operations (revenues) over the costs incurred for earning revenues (expenses) is referred to as net income.
  • Income from Operations is more useful in comparison of results of a company because Income from Operations is the income from recurring business operatio...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

CONSTANT GROWTH VALUATION Harmon Clothiers stock currently sells for 20.00 a share. It just paid a dividend of ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What are the most common reasons for differences between the book and bank cash balances?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

What is computer crime?

Pkg Acc Infor Systems MS VISIO CD

Why will global sourcing increase?

Purchasing and Supply Chain Management