In a multiple-step income statement, operating expenses are subtracted from gross profit to compute a.other income. b.income from operations. c.net loss. d.net income.
Q: The cost that is incurred in the process of generating the income will be called as O a. Expense O…
A: Expense is the amount of cost incurred during the period. Revenue is the total amount of receipts.…
Q: What is the order of the subtotals that appear on a multi-step income statement? Gross Profit,…
A: Multi step income statement: A multiple step income statement refers to the income statement that…
Q: ___________________________ in which the similar expenses are grouped together and intermediate…
A: Revenues is the amount earned by an entity and outlays are the amounts incurred on the operations of…
Q: The profit and loss statement is also known as the O a. Statement of financial position O b.…
A: The profit and loss statement is prepared to find net profits or losses during period.
Q: Multiple-step income statements: a. Show both gross profit and income from operations b. Show…
A: Income statement is a statement which shows the performance of a firm during an accounting period.…
Q: Accumulated depreciation is a line item found in the: Statement of Financial Position O a. O b.…
A: Depreciation is the diminution in the worth of the asset due to its erosion, over use or…
Q: The income statement in which the total of all expenses is deducted from the total of all revenues…
A: The income statement is prepared to find net income or losses incurred during the period.
Q: for a relate to (a) operating activities, and (b) nonoperating activities. 18. Identify the sections…
A: Multi Step Income statement is one of the financial statements which shows all type of incomes and…
Q: Gross profit and income from operations are reported on a multiple- step but not a single-step…
A: Income statement means a statement where the all income , revenue , expenses and losses are given…
Q: The function of expense method reports gross margin and income from operations. True False
A: In function of expense method, the expenses are allocated based on the activity from which such…
Q: Which of the following would not be found on a single-step income statement? Revenues. Gross…
A: The single-step format uses only one subtraction to arrive at net income. Here expenses are deducted…
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: Which statement is incorrect? A. Deferred income-beginning
A: Prepaid Expenses -: Prepaid Expenses are forthcoming expenditures that have been reimbursed in…
Q: The main difference between the income statements of a merchandising and a service type business is:…
A: SOLUTION EXPLANATION - A MERCHANDISING COMPANY ENGAGED IN PURCHASE AND RESALE OF TANGIBLE GOODS.…
Q: Which of the following is the key performance measure reported on the income statement that is…
A: Income statement is statement showing items of income and expenses
Q: Operating expenses are comprised of the following: O General and Administrative Expense, Cost of…
A: Operating Expenses (OpEx) are those expenses which are directly associated with the day to day…
Q: In composite analysis, the items in the Profit and Loss alc are expressed as a percentage of *…
A: Under the composite analysis one variable is taken from the profit and loss statement while another…
Q: The following statements relate to analysis of expenses in the income statement based on either the…
A: PAS are Philippine Accounting Standards PAS 1 - Presentation of Financial Statements.
Q: Gross profit and income from operations are reported on a multiple-step but not a single-step income…
A: Gross profit: It is a profit earned by a firm after deducting its cost related to production from…
Q: A debit balance in the Income Summary account represents a net loss. O True O False
A: The income summary account is a nominal account used to close the temporary accounts of the business…
Q: When choosing between the ‘nature’ and ‘function’ of expenses in the presentation of its statement…
A: For analyzing the expense, two methods are used, namely the nature of expense and function of…
Q: TRUE or FALSE 1. Companies are required to use two statement approach. 2. The single-step statement…
A: The financial statements of the business includes the income statement and balance sheet.
Q: The income statement might also be called all of the following except: Group of answer choices…
A: Income statement: The income statement determines the net income of the business by subtracting the…
Q: Net income or net loss is the difference between total revenue and total expenses over a specific…
A: Net income is the income earned by a business during a accounting period. Net income or loss is…
Q: Accounting equation is developed based on a. Revenue realization b. Dual aspect c. Money measurement…
A: The accounting equation states that assets equals to total of liabilities and shareholders' equity.
Q: In the statement of profit and loss of common size statement a. Figure of net revenue from…
A: There are various financial analysis statements such as balance sheet or profit and loss statement
Q: Interest payable, retained earnings, and sales revenue have a balance whereby credits normally…
A: Gross profit: It is a profit earned by a firm after deducting its cost related to production from…
Q: 1.The income statement can be expressed as an equation: A.Income =Income-Expenses B.Revenue-Expenses…
A: Income Statement: A financial statement which shows profitability of company over a period of time…
Q: Under the historical cost accounting model the financial statement that is regarded as the most…
A: A financial statement is prepared by the management for users' decision making, it includes the…
Q: The income statement in which the total of all expenses is deducted from the total of all revenues…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: On a multiple-step income statement, income from operations is arrived at after considering all…
A: Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: What is reported in the discontinued operations section of the income statement?
A: Discontinued Operations: It is the second section after the continuing operations on the income…
Q: On the multiple-step income statement, which of the following would be the least likely to be found…
A: Other losses and incomes head in the multistep income statement shows all the expenses and revenues…
Q: The combination of Selling Expenses and Administrative Expenses is referred to as Select one: a.…
A: Cost sheet is a method of allocating total cost into different categories such as direct material…
Q: Which is incorrect concerning the presentation of Income Statement? A. When items of income and…
A: Presentation of Income statement : The income statement is prepared for presenting the…
Q: alculate the following from the additional information given G Gross profit H Net profit
A: We need to compute gross and net profit of the firm.
Q: hance, a profit is period exceeds the amount of net assets at the beginning of the earned only if…
A: Physical capital maintenance : The physical capital is where capital of an organisation is regarded…
Q: Which of the following expenses is usually listed last on the income statement? a. Advertising…
A: The income statement is one of the financial statements of the business. It tells about the…
Q: How are discontinued operations reported in the income statement?
A: Discounted operations: These operations refer to the disposal of sale of significant element of…
Q: The amount of assets consumed during the performance of business operations in a period while…
A: Assets can be defined as any resource which has its own intrinsic economic value, owned and…
Q: Which of the following statements related to multiple-step Statement of Profit or Loss is not true?…
A: A multiple-step income statement reports a company's revenues, expenses and overall profit or loss…
Q: Based on the information above compute and interpret: 1.Profitability Ratio a) Gross Profit Ratio b)…
A: 1. Profitability ratios a) Gross Profit Margin = (Gross profit / Net sales ) *100 Gross profit =…
Q: which comes first when preparing a income statement?
A: Income statement is a statement which provides details of all income and all expenses of the…
Q: Which of the following statement is TRUE for a Multi-Step Income Statement?
A: A multi step income statement is a statement where the expenses are divided in into operating and…
Q: In a multiple-step income statement, the dollar amount for income from operations is always the same…
A: A multiple step income statement refers to the income statement that shows the operating and…
Q: Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Cost of…
A: Definition: Financial Accounting: It refers to the process of recording the financial transactions…
Q: If a company captúrales a cost that should have been expensed.... A. Expenses will be overstated and…
A: 1. Capital Expenditure - Capital Expenditure is incurred to acquired long term assets. Company…
Q: On a multiple step income statement, the account interest expense would be located unde
A: Interest expense: Interest Expenses is the Return paid to the Debt holders of the company It is…
Q: Other income is a. added to operating income. b. deducted from operating income. c. added to gross…
A: Other income is those income which are not earned in normal course of business. It is an income…
In a multiple-step income statement, operating expenses are subtracted from gross profit to compute
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A multi-step income statement ________. A. separates cost of goods sold from operating expenses B. considers interest revenue an operating activity C. is another name for a simple income statement D. combines cost of goods sold and operating expensesWhich of the following is a measurement of earnings that represents the profit before interest, taxes, depreciation and amortization are subtracted? A. net income B. retained earnings C. EBITDA D. EPSWhat is the order of the subtotals that appear on a multi-step income statement? a. Gross Profit, Operating Income, Net Income, Total Other Revenues and Expenses b. Operating Income, Gross Profit, Net Income, Total Other Revenues and Expenses c. Total Other Revenues and Expenses, Operating Income, Gross Profit, Net Income d. Gross Profit, Operating Income, Total Other Revenues and Expenses, Net Income
- indicate whether the statement describes a multiple-step income statement or asingle-step income statement.a. Multiple-step income statement b. Single-step income statement Commonly reports detailed computations of net sales and other costs and expenses.The income statement line gross profit will appear on which income statement format? Select one: a. Receipt and payment account b. Multiple step income statement c. Single step income statement d. Income and expenditure accountA vertical common-size income sheet expresses each category of the income statement as a percentage of A. assets. B. equity. C. revenue. D. operating income.
- Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Cost of salesOn a multiple step income statement, the account interest expense would be located under A) Net sales B) COGS C) Other Revenues and expensesExpenses on the income statement may be grouped by: C . either function or nature.
- indicate whether the statement describes a multiple-step income statement or asingle-step income statement.a. Multiple-step income statement b. Single-step income statement Separates income from operations from the other revenues and gains.If a company capitalizes costs that should be expensed, how is its income statement for the currentperiod impacted?A. Assets understatedB. Net Income understatedC. Expenses understatedD. Revenues understatedThe normal ordering of items in the income statement would be best illustrated by which of the following? Group of answer choices A. Income from continuing operations, extraordinary items, cumulative effects, discontinued operations, net income B. Income from continuing operations, discontinued operations, extraordinary items, cumulative effects, net income C. Extraordinary items, cumulative effects, income from continuing operations, discontinued operations, net income D.Discontinued operations, income from continuing operations, extraordinary items, cumulative effects, net income
