The Income Statement Answers Which Question Quizlet

Balance sheet and income statement data indicate the following.

The income statement answers which question quizlet. Bonds payable 6 issued 1994 due 2019 1 200 000 preferred 8 stock 100 par no change during the year 200 000 common stock 50 par no change during the year 1 000 000 income before income tax for year 320 000 income tax for year 80 000 common dividends paid 60 000. In the absence of information about the date of repayment of a liability then it may be assumed. Prepare balance sheet for f. Better approximates inventory cost necessary to generate revenue.

As an addition in the cost of goods sold section of the income statement and as a current asset on the balance sheet. Only in the cost of goods sold section of the income statement. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. A an income statement account and a balance sheet account.

Green as at 31 march 2015 in both horizontal and vertical style. Income statement retained earnings statement balance sheet and statement of cash flows d saira s maid service began the year with total assets of 120 000 and stockholders equity of 40 000. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business. If a utility service bill has not been received at the end of the accounting period but utilities were used during the period then a it is optional whether to record the expense before the bill is received.

Always results in a higher amount of net income being reported. The following trial balance is prepared after preparation of income statement for f. C the sale will not be added to net income on the income statement but added to net income on the. B question 5 of 10 10 0 points the income statement is important because it will tell you if your business will be profitable in the future true false answer key.

Green as at 31 march 2015. Question lo4 lifo is considered an income statement approach for reporting inventory because it. False question 6 of 10 10 0 points the balance sheet will show you the financial condition of your business what you own what you owe and the owners financial interest. Start studying income statement questions.

Learn vocabulary terms and more with flashcards games and other study tools. Better approximates the value of ending inventory c. A the sale will be added to net income on the income statement and retained in net income on the statement of cash flows. B the sale will be added to net income on the income statement but deducted from net income on the statement of cash flows.