Sales 46,828 Purchases 32222 Capital 80,000 Debtors 12.036 Creditors 11,290 Bank 7,530 Cash in hand 256 Premises 54,000 Fatures and ftings 15,000 Equipment 8.00 Wages 3,800 Motor vehicies 558 Drawings 2,800 Sundries 912 Rent 1000

Q: Net income equal to revenues minus?

A: Once taxes and other tax withholding have been taken out of your paycheck, net income is the amount…

Q: What do the Retained earnings represent?

A: Financial Statement:   They are annual reports of an organization summarizing the financial…

Q: Compare and contrast Measuring GDP using the Income Approach vs Measuring GDP using the Expenditure…

A: Gross Domestic Product is defined as the final value of the goods as well as services that used to…

Q: difference between Gross Earnings and Net Earnings

A: Gross earnings and Net earnings are two terms used in financial accounting while computation of the…

Q: Should unrealized gains and losses be shown as net income or comprehensive income? Defend your…

A: Unrealized gains and losses refer to changes in the value of assets or liabilities that have not…

Q: what is a condensed income statement

A: Definition: Financial statements: Financial statements are condensed summary of transactions…

Q: What is the income statemen, owners equity, balance she

A: Income Statement is an account prepared to record all the expenses and revenues of a particular…

Q: Why are preferred dividends deducted from net income when calculating EPS? Are there circumstances…

A: Net income is the result of total expenses from the total revenue. EPS is the short form of Earnings…

Q: explain the owner equity ratio if owner equity ratio less than 0.5 it's good or bad

A: The equity ratio is a ratio indicating the relative proportion of equity in total assets of the…

Q: What is earning per share? Explain its significance.

A: Earnings per share:  Earnings per share represent the amount of income earned per share of…

Q: How do you accrue and calculate interest

A: interest calculation = principle amount * rate of interest    accrued interest is interest…

Q: What does the annuity factor indicate?

A: Annuity factor It indicates the discounted factor’s sum for all the n maturities when all n…

Q: What are the different sources of financial ratio information?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: Define each of the following terms: g. Repatriation of earnings; political risk

A: Repatriation means the conversion to a single domestic currency of any foreign currency.…

Q: Explain Net Income versus Cash Flow?

A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…

Q: Why do net income and net cash flow differ?

A: Net income vs Net cash flow:

Q: What is net income? Give three examples?

A: Net income is the calculation of the remaining amount with an organization after deducting taxes,…

Q: Why is profit shown on liabilities side?

A: This is because of separate entity principle of accounting which says that the owner and business…

Q: How do you treat net loss on a balance sheet?

A: Balance sheet: It refers to a financial statement that shows all the liabilities, assets, and…

Q: dividends considered

A: Dividend represents the income distributed among the shareholders of the company. Its is considered…

Q: how do you calulate interest income and interest expense

A: Interest Income : It is the total amount earned by an individual or an entity during a specific time…

Q: What is the main advantage of receiving dividend income vs. interest income? Explain.

A: A person receives dividend income on the equity investments made by him/her.In contrast, a person…

Q: How is the times-interest-earned ratio calculated, and what does it evaluate?

A:

Q: What is accrued rent?

A: The accrual basis of accounting is the accounting done for the transaction even if the cash inflow…

Q: How do you caluclate return on assets and return on equity?

A: Ratio analysis is a mathematical expression of the relationship between two accounting figures.There…

Q: What is another way of saying "Interest earned on interest"?

A: "Interest earned on interest" means the interest earned on the interest amount which was earned on…

Q: what is assets? what is non-current assets? what is current assets? what is equity? what is…

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

Q: How is the earned income credit determined?

A: Earned income credit: Earned income credit is a refundable tax credit system designed by the federal…

Q: How did you calculate the all items excluding interest?

A: Cash budget represents the outflow and inflow of cash and takes into consideration the beginning…

Q: EBIT is equivalent to profits after taxes. true or false?

A: EBIT is the earnings before interest and tax.

Q: What is net worth or shareholders’ net worth?

A: The stock holder’s net worth or net worth is the difference between total assets and liabilities of…

Q: What impact does an increase in expenses have on net income

A: In accounting we say that: Net income = Total revenue - total expenses

Q: What is information content hypothesis (dividends)?

A: Managers of the company generally prefer not to reduce the dividends paid to the shareholders with a…