Other income is   a. added to operating income. b. deducted from operating income. c. added to gross profit. d. deducted from sales.

Q: Under the gross profit method, if the gross profit rate is based on cost, the cost of sales is…

A: The gross profit method is the one wherein the amount of inventory is measured using the gross…

Q: When using vertical analysis, we express income statement accounts as a percentage of a. Net income.…

A: Vertical analysis is the method of financial statement analysis, and it is useful in evaluating a…

Q: The profit margin ratio is calculated by dividing: Select one: profit (loss) by sales revenue.…

A: Ratio analysis is quantitive method of getting inside review of an organisation. This helps us to…

Q: The numerator of the return on total assets is a. net income b. net income plus tax expense c.…

A: Return on Total Assets = Net Income + Interest Expenses (1-Tax Rate) / Average Total Assets

Q: E2B. Using the classification scheme below for a multistep income statement, match cach account with…

A: A Multi-step Income statement is Profit and Loss account in which Revenue and Expense items are…

Q: The difference between sales and cost of goods sold for a retail business is: a.net sales. b.gross…

A:

Q: Using accrual accounting, when is revenue recognized? A. When cash transfers B. When the…

A: There are two type of accounting merhods used in business. One is cash basis of accounting and other…

Q: Concept introduction Gross profit ratio: Gross profit ratio calculated by dividng the gross profit…

A: Cost of goods sold means cost incurred on goods or cost of goods that are being offered for sale to…

Q: A multi- step income statement ___________. A. Seperates cost of goods sold from operating…

A: Mutli step income statement means an income statement where first gross profit is calculated by…

Q: The accounting principle upon which deferrals and accruals are based is Oa, conservatism Ob.…

A: Accounting principles are those rules and regulations which are being used by accountants all over…