Explain profit-and-loss statement?

Q: What is the Importance of the Profit Ratio?

A: Profit ratio: Profit ratio is utilized to assess the corporation's capacity to make revenue as…

Q: On Jan. 1, 2008, Palencia and Santos decided to form a partnership. At the end of the year, the…

A: Average capital of Palencia = P40,000×312+ P35,000×412+ P45,000×212+ P50,000×212+ P54,000×112…

Q: What formula is used to determine net profit

A: Net profit is the actual income earned by an organization after paying all the expenses. It is…

Q: What are the Profit margins?

A: Answer: Profit margin represents a product, company or sector profitability. It nothing but the…

Q: How to correctly find the operating profit? Show an example please.

A: The calculation of operating profit is an important aspect of understanding the financial position…

Q: Define cost-volume-profit analysis?

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Define Gross Profit Method.

A: Definition:   Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…

Q: Why profit shows as liability and loss shows as asset?

A: The assets and expenses have the debit normal balance. The liabilities and revenue have credit…

Q: explain what is Net profit margin with a comprehensive example

A: The objective of this question is to understand the concept of Net Profit Margin, a key…

Q: Define the term profit oriented.

A: Profit Oriented Company: Profit oriented company are refer as the company which main aim is to earn…

Q: Rs. Rs. Sales 428,000 Purchases 304,400 Wages and salaries 64,000 Rent 14,000 Heating and lighting…

A: Net Profit is Profit/Income left after Deducting all Business Expense from Total Revenue.

Q: Sales Discounts 7,928 Cost of Merchandise Sold 445,174 Advertising Expense 9,113 Local municipal…

A: The income statement is prepared to find net income or loss incurred during the period. The excess…

Q: Entity A started its operations on January 1, 20x1. On this date, Entity A's equity consisted of P2M…

A: Given information: Historical rate = P5 per yuan Average rate = P8 per yuan Closing rate = P10 per…

Q: role of the cost and its impact on profitability?

A: Costing is an important process that businesses use to determine the cost of producing goods and…

Q: What is the accounting rate of return?

A:

Q: What is income approach measurement?

A: Step 1 The income approach is a real estate valuation tool that determines fair market value based…

Q: Define the term Profit margins?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: What is gross profit margin?

A: The method to analyze the performance of a company through its profitability is term as the…

Q: What is Pro forma (or projected) profit-and-loss statement?

A: Pro Forma financial  Statement (also called as pro forma profit and loss) means that however the…

Q: Do you use an income-statement strategy?

A: The income statement is one of three financial statements of an entity.(The others are the balance…

Q: Explain the term Divisible Profit.

A: Common stock: Common stock is the instrument used by the company for raising funds from the general…

Q: Define Selling profit.

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

Q: E3-18 (Static) Analyzing the Effects of Transactions Using T-Accounts and Interpreting the Net…

A: In order to determine the net profit margin ratio, the net profit is required to be divided by the…

Q: Describe the common profitability measures.

A: Common profitability measures include profitability ratios such as ROE, ROA, profit margin etc They…