Which of the following is an incorrect statement?     Income - Expenses = Operating Incom     Current Assets - Current Liabilities = Net Working Capital     Net Profit = EBT - Taxes     Operating Income - Interest PMT = Gross Profit     Expenses = CGS + Operating Expenses

Q: Income Statement 1) Why are items such as sales and labour/Gross Profit on the CR side and items…

A: 1.Revenues are recorded in the credit side of the income statement. Thus, sales and labour/gross…

Q: Gross profit is equal to Select one: a.  revenues - expenses b. sales - cost of goods sold c.…

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

Q: What amount can be borrowed if seven quarterly payments of $4,600 are made at a 12% annual rate of…

A: Present value refers to the current date value That is the present value of all future cash flows…

Q: Which should be subtracted from the net income when using the indirect method? A. Loss on sale of…

A: A cash flow statement is a financial statement that summarizes the cash and cash equivalents…

Q: Net operating profit after taxes (NOPAT) is the amount of net income a company would generate from…

A: Solution : Net operating profit after taxes (NOPAT) is the amount of net income a company would…

Q: Balance sheet Assets Non-current assets Property, plant and equipment Long-term receivables Total…

A: Statement of Cash Flow - A cash flow statement is a financial statement that includes the inflow and…

Q: Q3: Summarize chapter 4 (The effect of profit or loss on capital and the double entry system for…

A: Capital is the monetary resources of the business which is used to generate income or wealth.

Q: 22 Operating profit margin is also known as ________________________. a. Earnings before tax b.…

A: Operating profit means profit generated from operating revenues and operating expenses. It does not…

Q: Question 25 Which one of the following refers to the economic resources of a business used to…

A: Generation of revenue is one of the main objective of profit making organisations. Profit making…

Q: Profit is A) assets minus liabilities B) the excess of revenues over expenses C) the excess of…

A: Accounting equation is the equation that shows relationship between assets, liabilities and owner's…

Q: The current ratio of a company is its current assets divided by its current liabilities. Question 7…

A: CURRENT RATIOCurrent Ratio is the ratio between Current Assets & Current Liabilities. Current…

Q: Which of the following expenses would most likely be reported as a separate line item on the…

A: The statement of activities is a financial statement used by not-for-profit organizations and…

Q: Which of the following equations expresses the definition of “income”?   Choices; Income = Revenues…

A: Revenues - It is the amount of money received through sale of goods and services . Gains - It is the…

Q: the income statement, interest revenue is found in     operating revenues and expenses.…

A: Interest revenue  earned  is not the main source of income  for a business

Q: Net income is gross profit less other income.O financing expenses.O operating expenses.O other…

A: Gross profit is computed by subtracting cost of goods sold from revenue. Gross Profit = Revenue  -…

Q: Which of the following statement is TRUE for a Multi-Step Income Statement? a. It divides both…

A: Multi-Step Income Statement is prepared to classify the revenues and expenses on various grounds…

Q: revenues ew less than expenses, what results on the income statement? What impact does an increase…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated…

A: Margin :— It is calculated by dividing net operating income by net sales.   Turnover :— It is…

Q: Which of the following best represents operating income? Seleccione una: Oa. Income after financing…

A: Income after financing activities (option a): This option describes the net income remaining after…

Q: Which of the following breakeven points requires the minimum quantity of production? O gross profit…

A: Break-even quantity is the number of units to be produced to recover the expenses incrred. Now, this…

Q: Which of the following is NOT considered to be an operating expense on the income statement? Group…

A: Theses are the main expenses of the firm that are necessary for making the product and smooth…

Q: The percentage analysis of increases and decreases in individual items on comparative financial…

A: A financial statement is a group of four statements of a company. These statements are as follows:…

Q: Question 22 of 40 Which of these would be considered a noncurrent asset? A. a company vehicle O B.…

A: Non-current assets are those which have a life of more than one year. The current assets are those…

Q: If a company capitalizes costs that should be expensed, how is its income statement for the…

A: A capitalized cost seems to be an element that is added to the cost structure of a fixed asset on a…

Q: Income Statement for the year ending 31 December 2012 Sales revenue 75 000 Beginning inventory…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: 10-1 Return on investment usually consists of which two components? Select one: a. dividends and…

A: Explanation- Return on investment (ROI) or return on costs (ROC) is a period by comparing net income…

Q: financial assets generate net income to the economy, while real assets define the allocation of…

A: Financial assets are assets are liquid assets that can easily and quickly be converted into cash…

Q: Which of the following is not a component of other comprehensive income under GAAP? earnings gains…

A: Other comprehensive income means those items of revenues and expenses that are not part of Profit…

Q: The expected value of an​ accountant's profit and loss analysis is 0. Explain what this means.…

A: Justification A. Since the expected value cannot be less than​ 0, an expected value of 0 means…

Q: Knowledge Check 01 Which of the following describes how working capital is computed? Multiple Choice…

A: Working Capital is the operating liquidity of the company which is available to business or entity.…

Q: All of the following are resources owned or controlled by a company, except: O A. Unearned rent…

A: Resources owned or controlled by the company: All the assets are the resource for the company…

Q: wo main ways are relevant to compare an entity's capital at the beginning and end of an accounting…

A: The right answer is option b. i & iv

Q: 23 Which element of financial performance decreases in economic benefits during the accounting…

A: Accounting equations are on the basis of the dual aspect concept of accounting. It means that every…

Q: statements are to be recognized and carried in the statement of financial position and statement of…

A: Answer: Option D is the Correct Answer i.e. Measurement

Q: An investment is the use of money or capital for income or​ _______. expenses profit value present…

A: An investment is an item or an asset acquired with the goal of earning income or appreciation in the…

Q: Profitability refers to Select one: O a. Earnings after interest and tax O b, Earnings before…

A: Income statement is the financial statement which shows the profitibility of the firm.

Q: Gross profit minus total operating expenses is called ____________. Group of answer choices income…

A: Gross Profit: After deducting all of the expenditures that are associated with the production and…

Q: dentify each of the following

A: Assets are the items your company owns that can provide future economic benefit. Liabilities…

Q: orted profit as a result of the erros

A: Given: To prepare the statement of adjusted working capital and net misstatement of the reported…

Q: Accounting rules specify that assets on the balance sheet must be reported at current market value,…

A: Balance sheet is the statement in which all the assets be it a current or non-current and the…

Q: Current assets LESS current liabilities is the *       a. Current Ratio       b. Net Worth Ratio…

A: Current assets  is asset which can be realised in normal operating cycle of business.

Q: Credits always increase which accounts? Assets, Liabilities and Common Stock Liabilities, Revenues…

A: Lets understand the basics. As per golden rule of accounting, all asset accounts and expense…

Q: Which of the following is an incorrect statement?     Revenue - Operating Income = Gross Margin…

A: Gross margin is the amount earned by the firm after deducting COGS from revenue.

Q: Owner's equity Select one: a. The resulting amount when total liabilities are subtracted from total…

A: We know that the accounting equation is  Assets = Liabilities + Shareholders Equity That is we can…

Q: Which of the following is referred to as the Accounting Equation? Assets = Liabilities + Equity…

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

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.