The main difference between the net income reported in the separate income statement of the branch and the net income reported by the home office for the branch’s operation is the a. Overstatement of beginning and ending inventory reported by the branch b. Overstatement of cost of goods sold reported by the branch c. Overstatement of shipment from home office reported by the branch d. Overstatement of total goods available for sale reported by the branch

Q: Analyze the truth of this statement. The income statements for merchandising and manufacturing…

A: Cost of goods manufactured - The cost of goods manufactured is calculated as follows - Total…

Q: 9. The account prepared in the same way as that when goods are invoice at cost, except that all…

A: Branch accounting involves managing and reporting the financial activities of separate operating…

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: If the inventory reported on the statement of financial position is understated, then the net income…

A: The objective of the question is to understand the relationship between the inventory reported on…

Q: The single-step income statement for a merchandiser shows O other expenses and losses in a separate…

A: A single-step income statement is a format of income statement which does not classify revenues…

Q: Product costs are ordinarily found in the traditional Income Statement's Operating Expenses whereas…

A: Product costs are those costs which are incurred on specific products like material cost, labour…

Q: Which of the following statements is correct in the context of the Income Statement prepared by a…

A: The Income Statement is prepared in order to show the result of operating a business for a period of…

Q: The receiving department compares the quantity received with the quantity prin on the receiving…

A: PO termed as Purchase order refers to the document which legally binds and it is created through…

Q: Multiple-step Income Statement.

A: Multiple-step income statement is a format of income statement in which items of revenues and…

Q: e sale of inventory items by a parent company to an affiliated company a. enters the consolidated…

A: The parents company normally sends goods to affiliated company and but both sales and profit are…

Q: At what amount will the inventory and cost of goods sold amounts be reported on the financial…

A: As per the accounting standards, the closing inventory must be reported at lower of cost or net…

Q: Under ASC Topic 606 for revenue recognition, which of the following factors is not an indicator of…

A: Its Very Important to determine the Principal and agent as recording of revenue by both Principal…

Q: Freight costs paid by a seller on merchandise sold to customers will cause an increase to a…

A: In operating expenses for the seller. Explanation:In operating expenses for the seller.When a seller…

Q: The Habib Company did not include in their inventory count inventory that was sold to a customer…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Required: 1. Compute cost of goods sold for each of the two items separately using the FIFO and LIFO…

A: Introduction: FIFO stands for First In First out. Under this standard inventory method, oldest…

Q: Requirement a. What are the accounting requirements for a correct sales​ cutoff?     A. A shipment…

A: Revenue shall be recognition according to accounting standards. Following is the condition to…

Q: I have a couple of questions. PLEASE answer thoroughly and explain.1) Are all types of revenue…

A: Dear student, as you have not mentioned the question number to be answered, so we are answering the…

Q: Which of the following expenditure cycle tasksshould not be separated?a. Purchasing inventory items…

A: Human intervention is required for certain tasks.

Q: When sales are made with a right of return, the company_ а. should recognize revenue for the full…

A: The revenue would be posted in the income statement of the company. The expenses are deducted form…

Q: What type of expenses are deducted as a part of gross profit? A)"Cost of goods sold" only…

A: Gross profit can be calculated by deducting cost of goods sold from the net sales.