Can a business earn a gross profit but incur a net loss? Explain.

Q: Why Sales revenue does not include the residual value?

A: The residual value, also known as salvage value, is the estimated value of a fixed asset at the end…

Q: Companies that use OSD can deduct the cost of sales or the cost of services. Is it true or false

A: Business activities in every country are governed by certain Business laws that have direct…

Q: A positive price-to-book ratio indicates something is wrong with a company's use of its assets. True…

A: In the world of finance and investing, numerous metrics and ratios are utilized to evaluate the…

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: naked debenture

A: Debentures which are not secured by specific assets is known as Naked debentures.

Q: In an S Corporation are the unit holders liable for busin

A: Yes, they are liable for business losses too if they fulfill these requirements.

Q: Why is the Modified Accelerated Cost Recovery System not generally accepted for financial accounting…

A:

Q: What is the primary difference between the two methods for disaggregating ROE and how does each…

A: Du-point analysis of ROE: The DuPont analysis is a framework popularized by DuPont for analyzing…

Q: Which of the following statements is/are FALSE:

A: 1.Prudence convention:  It is also known as Conservatism Principle . In this anticipated revenues…

Q: When do companies break apart a sale and treat its parts differently for purposes of recognizing…

A: Earlier, the concept of revenue recognition was not properly framed and it created problems on the…

Q: why most of the companies used gross profit method?

A: Gross method is used to evaluate the inventory at year end.

Q: Which of the following is not a disadvantage of the LIFO inventory cost flow assumption? a. The…

A: LIFO is the Last in first out method of inventory which says that inventory purchased last should be…

Q: ord increases and decreases in the fair value of an investment when accountants do not record…

A: In the case of property, plant and equipment, it has always been seen that they are maintained in…

Q: Explain how is it possible for a business to earn a gross profit but still incur a net loss.

A: Profit is a financial measure that shows a business's financial performance and how much money it…

Q: What types of liabilities, assets, and equity are not assumed to vary directly with sales

A: Solution:- The following types of assets, liabilities, and equity are assumed to vary directly with…

Q: Which of the following is not deductible from business income? Group of answer choices Casual…

A: Business income is earned revenue that includes all money generated by an entity's operations.…

Q: What does it mean when a company has a major expense? Like for example, "The major expense for…

A: For your understanding -  There are two types of cost direct costs and indirect costs. Direct costs…

Q: Gross income derived from business shall be equivalent to gross sales less sales returns, discount…

A: Sales return: when the sold item being returned by the customer to the seller. It is known as sales…

Q: is less Tax on Profit on Sale of Asset and less Operating Costs (revenue and expenses) or (other…

A: Capital Budgeting helps the company to check the viability of the project. It will help the company…

Q: What is a disadvantage of the corporate form? O Profit O Revenue Owners have very little influence…

A: Eliminating the incorrect options:A. Profit: Profit is not a disadvantage of the corporate form of…

Q: why the company logo is an asset? what does mean by retained earning (when it is not distributed as…

A: Logos are intangible assets of a company. Intangible assets provide value to a company because they…

Q: Why is it often difficult for the averageinvestor to take advantage of underpricing?

A: Under Pricing of the stock refers to the situation when the current market price of the company’s…

Q: What is meant by Not-for-profit accounting?

A: Accounting represents the system of maintaining records of day-to-day business operations of an…

Q: Companies that use OSD can deduct the cost of goods sold or the cost of services provided. Is it…

A: Business activities in every country are governed by certain Business laws that have direct…

Q: What are the main differences in accounting for profit and not for profit organizations?

A: Profit Organizations: When the main motive or the primary goal of a business is specifically to…

Q: The difference between the carrying amount of a financial liability extinguished and the…

A: Liability means the amount which is to be paid to an outsider by business.

Q: Describe differences between gross profit, EBIT, and net profit. Also, what is the possibility of…

A: Gross profit, EBIT and Net profit are all important financial line items that can be found in a…

Q: 19)-When a company sells used equipment for a loss, the net profit margin percentage is unaffected.…

A: Fixed assets are those assets which are being held in business for longer period of time. Regular…

Q: Why is an owner's valuation of a borrowing business excluded from stated net worth to arrive at…

A: When we  say 'net worth' of a business it is  Assets - Liabilities of business.…