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1 year ago

A common-sized income statement, each item is expressed as a percentage of net income. true false

Business

1 answer:

oee [108]1 year ago

8 0

In a common-sized income statement, each item is expressed as a percentage of net income. TRUE

Commonplace-size earnings statement is the vertical evaluation of the income statement. A vertical analysis indicates all gadgets as chances and now not in absolute figures which affords a higher assessment. each line object is expressed as a percent determined by the base parent within the declaration.

A not unusual length earnings statement is an earnings declaration wherein each line item is expressed as a percent of the price of revenue or income. it's far used for vertical analysis, in which each line object in a monetary assertion is represented as a percentage of a base figure inside the assertion.

Commonplace length statements are usually expressed in the form of percentages. therefore, such statements are also known as a hundred according to cent statements or factor percent statements as all of the individual items are taken as a percent of 100.

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AG Inc. made a $85,000 sale on account with the following terms: 1/15, n/30. If the company uses the net method to record sales

neonofarm [45]

Answer:

$84,150

Explanation:

Given that

Sale amount = $85,000

Terms = 1% discount is given it payment is made within 15 days and the total credit period allowed is 30 days

The computation of the amount of account receivable that should be recorded is shown below:

= Sale amount - sale amount × discount rate given

= $85,000 - $85,000 × 1%

= $85,000 - $850

= $84,150

Simply we deduct the discount period from the sales amount so that the accurate value could come

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3 years ago

A dog grooming business is walking through the target market defining process and is now asking questions about its potential cu

siniylev [52]

Answer:

Explanation:

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3 years ago

ABC Company insured its building on a replacement cost basis for $700,000 under a property insurance policy that included an 80%

Rama09 [41]

Answer:

$35,000

Explanation:

Given that

Insurance = $700,000

Sustained cost = $40,000

Replacement cost = $1,000,000

Policy = 80%

The computation of amount eligible for payment is as shown below:-

Insurance required = Cost of building × Co insurance

=$1,000,000 × 0.80

= $800,000

The amount eligible for payment = (Insurance Carried ÷ Insurance Required) × Loss

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= $700,000 ÷ $800,000 × $40,000

= 0.875 × $35,000

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3 0

3 years ago

3. As the crisis in Venezuela deepened in late 2002 and early 2003, on January of 2003 the VEF was trading VEF1400/$. By Februar

aleksley [76]

Answer: 39.29%

Explanation:

For us to calculate the percentage change, we have to deduct the trading for VEF in January from the trading for VEF in February and then divide by VEF trading in January. This will be:

= (1950 - 1400)/1950

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3 years ago

PB4.

EleoNora [17]

Answer:

Explanation:

Cost of advertising the product - Selling & Administrative Cost

Fabric used to make the umbrellas -Direct Materials Cost

Maintenance of cutting machines used to cut the umbrella fabric so it will fit the umbrella frame -Manufacturing overhead Cost

Wages of workers who assemble the product - Direct labour Cost

President's salary - Selling & Administrative Cost

The salary of the supervisor of the people who assemble the product - Selling & Administrative Cost

Wages of the product tester who stands in a shower to make sure the umbrellas do not leak - Direct labour Cost

Cost of market research survey - Selling & Administrative Cost

Salary of the company's sales managers - Selling & Administrative Cost

Depreciation of administrative office building - Selling & Administrative Cost

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3 years ago