A corporation had the following assets and liabilities at the beginning and end of this year. Liabilities $32,581 48,398 Assets Beginning of the year End of the year $ 76,000 119,500 a. Owner made no investments in the business, and no dividends were paid during the year. b. Owner made no investments in the business, but dividends were $600 cash per month. c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. d. Dividends were $600 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock. Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.) b. C. d. Beginning of the year-Equity $ 43,419 $ 43,419 $ 43,419 $ 43,419 Owner investments 45,000 35,000 www m Dividend (7,200) (7,200) Net income (loss) 27,683 End of the year-Equity $ 71,102 $ 71,102 $ 71,102 $ 71,102

Q: Briefly explain the difference between gross profit, net profit and EBIT.

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Q: I thought for an Income Statement you only need serivce revenue, subract expenses and then you get a…

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Q: What is an accrued expense? Provide an example.

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Q: Explain the difference between accrued and prepaid expenses with illustrative examples.

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Q: Deductions from gross income are subtracted from gross income to derive taxable net income. TRUE OR…

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Q: Which of the following best describes revenue?

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Q: how to compare between prepaid expenses and unearned revenue?

A: The adjustment for deferred items are made at the end of the year.

Q: How can we determine the net income from operations and then adjust the net income?

A:

Q: Briefly explain the concepts ‘Profit and loss, Other Comprehensive Income and Total Comprehensive…

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Q: Distinguish between cash-basis net income and accrual-basis net income.

A:

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Q: In accounting terms, what is the difference between profit and loss

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Q: allocation of income or loss to have economic effect

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

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Q: What is referred by unearned income? How is it adjusted in the final accounts?

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Q: How does EVA differ from accounting profit?

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Q: What is gross profit? How do you calculate it?

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