Gross income derived from business shall be equivalent to gross sales less sales returns, discount and allowances, but undiminished of cost of goods sold. a.true b.false

Q: When there are no inventory at the beginning or at the end of the period, the total purchases will…

A: The total purchase amount is the price agreed upon by the buyer and seller for an item, including…

Q: Under the LIFO cost flow assumption during a period ofinflation, which of the following is false? A.…

A: Inflation and cost of goods sold - a company selling goods during periods of inflation will see an…

Q: 36-Assuming that Merchandise business use simple step income statement. Which of the following will…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: What is the effect on net income if a company failed ro record a purchase in transit (FOB shipping…

A: Purchase in transit (FOB shipping point) means that where buyer become the owner of the goods at the…

Q: Cost of goods sold is an operating expense. A.True B.False

A: Introduction:- Income statement shows company's income and expenses over a  period of time. Formula…

Q: Which of the following is a permanent account? Dividend Declared Allowance for Doubtful ACcount…

A: Permanent accounts, which are also called real accounts, are company accounts whose balances are…

Q: Pre b. To determine sales revenue d. Inventory does not affect net income To determine cost of goods…

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

Q: According to the expense recognition principle, inventory costs are expensed as cost of goods sold…

A: True

Q: Explain whether the following situations, taken independently, would be favorable or unfavorable: (…

A: Favorable is the condition that is positive for a business. This implies that the variance or the…

Q: The base used in estimating the Allowance for uncollectible is a. Percentage of Gross Profit b.…

A: The allowance for uncollectible accounts is prepared to estimate and record bad debt expense for the…

Q: Assume a company receives an actual return of goods. Which of the following needs to happen? Sales…

A: The return of goods is the amount of goods that were sold to customers but were returned to…

Q: Assuming that Merchandise business use multiple step income statement. Which of the following will…

A: The financial statement prepared to show the income earned and expenses incurred is known as income…

Q: nterest payable, retained earnings, and sales revenue have a balance whereby credits normally exceed…

A: Entry ledger have a balance of debit , credit or nil balance. Every assets and expenses are having…

Q: Which of the following accounts is not closed to Income Summary? * O Cost of Goods Sold O…

A: The closing entries are prepared at year end to close the temporary accounts of the business.

Q: True of False: 1. Merchandise inventory consists of products that a company acquires to resell to…

A: Hi, please note that as per guidelines, I'm answering the first 3 parts here. Kindly post the…

Q: The ratio of Gross profit expressed as a percentage of sales is called: a. Gross Profit Ratio O b.…

A: Sale represents the amount of goods sold by an entity.

Q: True (t) or False (f) ______ In the gross method, sales discounts are reported as a deduction from…

A: Formula: Net sales = Sales - Sales discounts. Deduction of sales discounts from sales value derives…

Q: Gross profit from sales is the difference between

A: Gross profit means the excess of revenue against the cost of good sold from the operating activity…

Q: Which of the following formula is correct for Gross Margin of a Merchandise Business under…

A:

Q: When the net price method is used to record credit sales, the sales discount not taken account is…

A: Under the net price method, all the credit sales are recorded at a net amount that is the amount…

Q: 1. Gross profit margin is impacted by sales and cost of goods sold changes." O A) True O B) False

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: amount of cost of sales?

A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: Selling expenses are subtrac

A: True.

Q: Profits -to-Sales relationships are defined as profit margins. Select one: a. True b. False

A: Ratio analysis is referred as the quantitative method of understanding company’s liquidity,…

Q: 55. Why is inventory, end is included in the computation of net income? * O A. To determine cost of…

A: Solution: Cost of goods sold = Beginning inventory + Purchases - Ending inventory Inventory, end is…

Q: Which of the following accounts are characterized as a "contra" account? (Select ALL tha apply) O…

A: Contra account: Contra effect of the transaction recorded on the opposite side

Q: Which of the following items in the balance sheet does NOT have a constant relationship with sales…

A: In the percentage of sales method, we forecast line items for the future by using the historical %…

Q: True or false 1. Net sales is equal to sales revenue plus sales returns and minus sales discounts 2.…

A: The statement of cost of goods sold is prepared to record the cost of goods sold during the period.

Q: 1) What type of account is Cost of Goods Sold? What statment does it appear on? Is it a Real or…

A: Cost of goods sold is an Account in the nature of expense account and is shown in the Income…

Q: Which of the following expressions is incorrect?      Gross profit – operating expenses = net…

A: Income statement: It can be defined as a financial statement that shows all the profits earned or…

Q: Gross profit is the gross sales price charged for the goods sold A.True B.False

A: Gross profit means the profit earned by selling the goods without considering the indirect expenses…

Q: Which of the following equations is false? a. Net Income = Gross Profit – Operating Expenses b. COGS…

A: The difference between gross profit and net profit or net income is the operating expenses. Gross…

Q: What is the difference between gross profit method & the retail method?

A: Gross Profit Method:-This method estimates the value of inventory by applying historical gross…

Q: Are all the relationships below correct? Sales is equal to Production (no change in inventory) No…

A: "Since you have asked multiple sub part question we will solve the first three sub part question for…

Q: Which is wrong?    The term creditable input VAT means input VAT deductible from output VAT.…

A: Input tax is utilised against payment of output tax liability.  Input tax will be credited for the…

Q: Which of the following statement is False for a Simple-Step Income Statement? a. Total expenses…

A: An income statement is one of the financial statements of a company which is prepared at the end of…

Q: The sales revenue section of an income statement for a retailer would not include Select one: a.…

A: The sales revenue section of an income statement for a retailer would not include

Q: How would the following transactions affect the current ratio and the acid-test ratio? (a) Purchase…

A: Current ratio is the ratio between the current assets and current liabilities. It shows the…

Q: cost of merchandise sold? S What is the term applied to the eXcess of net revenue from sales over…

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

Q: In profit and loss account, if debit is more than the credit, the difference is [A] net profit [B]…

A: In profit & loss (P&L) account the difference between debit and credit balances is termed as…

Q: Which of the following is not reported in an income statement under IFRS? a.    Discontinued…

A: Definition: Income statement refers to the financial results of business for the period of time.

Q: a. Income manipulation is difficult under LIFO. b. Accounting principles do not require that the…

A: The right answer is option b. Accounting principles do not require that the inventory cost flow…