LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

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Answer 1

Textbook Question

Chapter 15, Problem 1TF

LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

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Please provide the correct answer to this general accounting problem using accurate calculations.

Preston Manufacturing uses a standard costing system that allows 2.5 pounds of direct materials for one finished unit. During August, the company purchased 35,000 pounds of direct materials for $175,000 and manufactured 12,600 finished units. The standard direct materials cost allowed for the units manufactured is $126,000. The performance report shows that Preston has an unfavorable direct materials usage variance of $5,040. Also, the company records any price variance for materials at time of purchase. The number of pounds of direct materials used to produce August's output was__ pounds.

Can you explain the correct approach to solve this general accounting question?

Answer 2

Textbook Question

Chapter 15, Problem 1TF

LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

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Answer 3

Textbook Question

Chapter 15, Problem 1TF

LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 15, Problem 1TF

LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Answer 8

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Identify whether the given statement is true or false.

Answer 12

Answer to Problem 1TF

The given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Answer 13

Explanation of Solution

Multi-step income statement:

Multi-step income statement provides step-by-step computation of net sales, cost of goods sold, operating expenses, gross profit, other revenues and expenses, income from operations and net income.

In a multi-step income statement, Initially Gross sales are computed (less sales returns and allowances and sales discounts) and this difference is known as net sales.
Cost of goods sold is subtracted from net sales to get gross profit or gross margin. Then, operating expenses are subtracted from the gross profit to calculate income from operations.

Therefore, from the above explanation, the given statement “A multiple-step form of income statement calculates gross profit, before Subtracting operating expenses” is true.

Answer 14

Ch. 15 - LO1 A multiple-step form of income statement...Ch. 15 - Prob. 2TF Ch. 15 - Prob. 3TF Ch. 15 - Prob. 4TF Ch. 15 - LO4 Accounts receivable turnover is the number of...Ch. 15 - Prob. 1MC Ch. 15 - Prob. 2MC Ch. 15 - Prob. 3MC Ch. 15 - Prob. 4MC Ch. 15 - Prob. 5MC

LO1 A multiple-step form of income statement calculates gross profit, before subtracting operating expenses.

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