Using Financial Accounting Information
10th Edition
ISBN: 9781337276337
Author: Porter, Gary A.
Publisher: Cengage Learning,
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Chapter 2, Problem 2.11.1AAMCP
To determine
Concept Introduction:Income statement is prepared using two methods of presentation; single step income statement and multiple-step income statement. The multiple step income statement classifies the expenses into selling and general and administrative expenses.
To identify: The type of income statement.
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Based on the partial trial balance below, prepare the Statement of Income (SCI) with supporting notes to the financial statements
Make sure that the Statement of Income has the following:
Net Purchases- X,XXX,XXX.
Total Gross Income- X,XXX,XXX.
Total Marketing and Selling Expenses- XXX,XXX.
Total General and Administrative Expenses- XXX,XXX.
Total Manufaturing Cost - X,XXX,XXX.
Total Cost of Goods Sold- X,XXX,XXX.
Total Cost of Goods Manufactured- X,XXX,XXX.
Total Factory Overhead- X,XXX,XXX
Net Income After Tax- XXX,XXX.
Assuming that Merchandise business use multiple step income statement. Which of the following will be correct result of Income from operation by the business?
a.
Gross Margin will be multiplied by Total Operating expenses
b.
Operating expenses will be deducted from net sales
c.
Gross Margin will be divided by Total Operating expenses
d.
Total operating expenses will be deducted from Gross Margin
Clear my choice
Assuming that Merchandise business use multiple step income statement. Which of the following will be correct result of Income from operation by the business?
a.
Gross Margin will be divided by Total Operating expenses
b.
Total operating expenses will be deducted from Gross Margin
c.
Gross Margin will be multiplied by Total Operating expenses
d.
Operating expenses will be deducted from net sales
Chapter 2 Solutions
Using Financial Accounting Information
Ch. 2 - Prob. 2.1ECh. 2 - Prob. 2.2.1ECh. 2 - Prob. 2.2.2ECh. 2 - Classification of Financial Statement Items Regal...Ch. 2 - Prob. 2.4.1ECh. 2 - Prob. 2.4.2ECh. 2 - Prob. 2.4.3ECh. 2 - Prob. 2.5ECh. 2 - Prob. 2.6ECh. 2 - Prob. 2.7E
Ch. 2 - Prob. 2.8ECh. 2 - Statement of Retained Earnings Landon Corporation...Ch. 2 - Prob. 2.10ECh. 2 - Prob. 2.11ECh. 2 - Prob. 2.12MCECh. 2 - Prob. 2.13MCECh. 2 - Prob. 2.14MCECh. 2 - Prob. 2.1.1PCh. 2 - Prob. 2.1.2PCh. 2 - Prob. 2.2PCh. 2 - Prob. 2.3.1PCh. 2 - Prob. 2.3.2PCh. 2 - Prob. 2.3.3PCh. 2 - Prob. 2.4.1PCh. 2 - Prob. 2.4.2PCh. 2 - Prob. 2.5.1PCh. 2 - Prob. 2.5.2PCh. 2 - Prob. 2.5.3PCh. 2 - Prob. 2.6.1PCh. 2 - Prob. 2.6.2PCh. 2 - Prob. 2.7.1PCh. 2 - Prob. 2.7.2PCh. 2 - Prob. 2.7.3PCh. 2 - Multiple-Step Income Statement and Profit Margin...Ch. 2 - Prob. 2.8PCh. 2 - Prob. 2.9PCh. 2 - Prob. 2.10MCPCh. 2 - Prob. 2.11MCPCh. 2 - Prob. 2.12MCPCh. 2 - Prob. 2.1.1AAPCh. 2 - Prob. 2.1.2AAPCh. 2 - Prob. 2.2AAPCh. 2 - Prob. 2.3.1AAPCh. 2 - Prob. 2.3.2AAPCh. 2 - Prob. 2.3.3AAPCh. 2 - Prob. 2.4.1AAPCh. 2 - Prob. 2.4.2AAPCh. 2 - Prob. 2.5.1AAPCh. 2 - Prob. 2.5.2AAPCh. 2 - Prob. 2.5.3AAPCh. 2 - Prob. 2.6.1AAPCh. 2 - Prob. 2.6.2AAPCh. 2 - Prob. 2.7.1AAPCh. 2 - Prob. 2.7.2AAPCh. 2 - Prob. 2.7.3AAPCh. 2 - Multiple-Step Income Statement and Profit Margin...Ch. 2 - Prob. 2.8.1AAPCh. 2 - Prob. 2.8.2AAPCh. 2 - Prob. 2.9AAPCh. 2 - Prob. 2.10AAMCPCh. 2 - Prob. 2.11.1AAMCPCh. 2 - Prob. 2.11.2AAMCPCh. 2 - Prob. 2.12AAMCP
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- MULTIPLE-STEP INCOME STATEMENT Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Aeitos Plumbing Supplies for the year ended December 31, 20--.arrow_forwardWhich of the following statements is correct? Group of answer choices A)Revenue is recognized at the time of shipment when goods are shipped FOB destination. B)Sales returns and allowances are reported as operating expenses on an income statement. C)Revenue is recorded when title and risks of ownership transfer to the buyer. D)Sales discounts are reported as operating expenses on an income statement.arrow_forwardplease please answer correctly with all working and steps so that I can understand clearly thanks Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.arrow_forward
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