Income statement: It is a statement of financial records of the company’s monetary performance during the bookkeeping period. The financial data presented briefly in the statements are considered to assess the monetary presentation of the business and its profits and expenditures through functional and nonoperating activities. To determine the use of income statement to the investors and the creditors.

Question

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Answer 1

Question

Chapter 4, Problem 1Q

To determine

Income statement: It is a statement of financial records of the company’s monetary performance during the bookkeeping period. The financial data presented briefly in the statements are considered to assess the monetary presentation of the business and its profits and expenditures through functional and nonoperating activities.

To determine the use of income statement to the investors and the creditors.

Expert Solution & Answer

Explanation of Solution

Justification:

The statement provides scope for the investor and creditor to understand the future cash flows.
The past or historic performance of the company can be analyzed based on the income statement.
The level of risk involved and cost allocation efficiency can be identified using the income statement.
The relationship among the various components can be identified by understanding the income statement.

Conclusion

Thus, the uses of income statement are discussed.

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02:59

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respond to ceasar Companies make adjusting entries to ensure that their financial statements accurately reflect the true financial position and performance during a specific accounting period. These entries are necessary to account for revenues earned and expenses incurred that may not yet have been recorded in the books. Adjusting entries are typically made at the end of an accounting period, during the preparation of financial statements, as part of the accounting cycle. This step is crucial in aligning the company’s books with the accrual basis of accounting, where revenues and expenses are recognized when they are earned or incurred, rather than when cash is received or paid. By making these adjustments, companies can provide accurate and reliable financial information to stakeholders.

According to the accrual method of accounting, businesses make adjusting entries to ensure that their financial statements are correctly depicting their financial situation and performance. No matter when cash transactions take place, adjusting entries are required to record revenues when they are generated and expenses when they are incurred (Weygandt et al., 2022). In order to guarantee that financial statements present an accurate and impartial picture of their company's financial health, these entries help in bringing financial records into compliance with the revenue recognition and matching standards. In order to account for things like accumulated revenues, accrued expenses, depreciation, and prepaid expenses, adjusting entries are usually made at the conclusion of an accounting period prior to the preparation of financial statements (Kieso et al., 2020). By implementing these changes, businesses avoid making false representations in their financial reports, which enables…

Required information Skip to question [The following information applies to the questions displayed below.]Brianna's Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Brianna's Boutique uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost October 1 Beginning inventory 6 $830 $4,980 October 4 Sale 4 October 10 Purchase 5 840 4,200 October 13 Sale 3 October 20 Purchase 4 850 3,400 October 28 Sale 7 October 30 Purchase 6 860 5,160 $17,740 2. Using FIFO, calculate ending inventory and cost of goods sold at October 31.

Answer 2

Question

Chapter 4, Problem 1Q

To determine

Income statement: It is a statement of financial records of the company’s monetary performance during the bookkeeping period. The financial data presented briefly in the statements are considered to assess the monetary presentation of the business and its profits and expenditures through functional and nonoperating activities.

To determine the use of income statement to the investors and the creditors.

Expert Solution & Answer

Explanation of Solution

Justification:

The statement provides scope for the investor and creditor to understand the future cash flows.
The past or historic performance of the company can be analyzed based on the income statement.
The level of risk involved and cost allocation efficiency can be identified using the income statement.
The relationship among the various components can be identified by understanding the income statement.

Conclusion

Thus, the uses of income statement are discussed.

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02:59

Answer 3

Question

Chapter 4, Problem 1Q

To determine

Income statement: It is a statement of financial records of the company’s monetary performance during the bookkeeping period. The financial data presented briefly in the statements are considered to assess the monetary presentation of the business and its profits and expenditures through functional and nonoperating activities.

To determine the use of income statement to the investors and the creditors.

Expert Solution & Answer

Explanation of Solution

Justification:

The statement provides scope for the investor and creditor to understand the future cash flows.
The past or historic performance of the company can be analyzed based on the income statement.
The level of risk involved and cost allocation efficiency can be identified using the income statement.
The relationship among the various components can be identified by understanding the income statement.

Conclusion

Thus, the uses of income statement are discussed.

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02:59

Answer 4

Question

Chapter 4, Problem 1Q

To determine

Income statement: It is a statement of financial records of the company’s monetary performance during the bookkeeping period. The financial data presented briefly in the statements are considered to assess the monetary presentation of the business and its profits and expenditures through functional and nonoperating activities.

To determine the use of income statement to the investors and the creditors.

Expert Solution & Answer

Explanation of Solution

Justification:

The statement provides scope for the investor and creditor to understand the future cash flows.
The past or historic performance of the company can be analyzed based on the income statement.
The level of risk involved and cost allocation efficiency can be identified using the income statement.
The relationship among the various components can be identified by understanding the income statement.

Conclusion

Thus, the uses of income statement are discussed.

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Answer 5

Chapter 4, Problem 1Q

To determine

Income statement: It is a statement of financial records of the company’s monetary performance during the bookkeeping period. The financial data presented briefly in the statements are considered to assess the monetary presentation of the business and its profits and expenditures through functional and nonoperating activities.

To determine the use of income statement to the investors and the creditors.

Expert Solution & Answer

Explanation of Solution

Justification:

The statement provides scope for the investor and creditor to understand the future cash flows.
The past or historic performance of the company can be analyzed based on the income statement.
The level of risk involved and cost allocation efficiency can be identified using the income statement.
The relationship among the various components can be identified by understanding the income statement.

Conclusion

Thus, the uses of income statement are discussed.

Answer 6

Chapter 4, Problem 1Q

To determine

Income statement: It is a statement of financial records of the company’s monetary performance during the bookkeeping period. The financial data presented briefly in the statements are considered to assess the monetary presentation of the business and its profits and expenditures through functional and nonoperating activities.

To determine the use of income statement to the investors and the creditors.

Expert Solution & Answer

Explanation of Solution

Justification:

The statement provides scope for the investor and creditor to understand the future cash flows.
The past or historic performance of the company can be analyzed based on the income statement.
The level of risk involved and cost allocation efficiency can be identified using the income statement.
The relationship among the various components can be identified by understanding the income statement.

Conclusion

Thus, the uses of income statement are discussed.

Answer 7

Chapter 4, Problem 1Q

To determine

Income statement: It is a statement of financial records of the company’s monetary performance during the bookkeeping period. The financial data presented briefly in the statements are considered to assess the monetary presentation of the business and its profits and expenditures through functional and nonoperating activities.

To determine the use of income statement to the investors and the creditors.

Answer 8

Expert Solution & Answer

Explanation of Solution

Justification:

The statement provides scope for the investor and creditor to understand the future cash flows.
The past or historic performance of the company can be analyzed based on the income statement.
The level of risk involved and cost allocation efficiency can be identified using the income statement.
The relationship among the various components can be identified by understanding the income statement.