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1 year ago

Explain the equation for the income statement. What are the three major items reported on the income statement?

1 answer:

4 0

The equation for the income statement is Revenues - Cost of goods = Net income. The three major items reported on the income statement are net income, gross profits, and operating income.

The income statement is a statement of the profits and losses of a firm. It consists of three income statements. The Net income is derived by deducting the expenses of the firm from its revenues (Net income = Revenue - Expenses). It may also be calculated by adding the operating income with the non-operating items.

Gross profit is arrived at by subtracting the expenditure made on the products that were sold from the revenue of a firm. The Operating income is the result of subtracting the operating expenses from the gross profit.

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Cloud [144]

Answer:

$2 trillion

Explanation:

In a closed economy GDP is $12 trillion

Consumption is $8 trillion

Government spending is $2 trillion

Taxes is $0.5 trillion

Therefore the investment spending can be calculated as follows

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= $2 trillion

Hence investment spending is $2 trillion

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3 years ago

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Answer:

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Explanation:

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3 years ago

Suppose you purchase five put contracts on Testaburger Co. The strike price is $45, and the premium is $3. If, at expiration, th

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Answer:

3000

1500

Explanation:

For each of the answers in this question I have added the formulas to solve them in the attachment below

(45-39)*5*100

= 3000

(45-39)-3 x5 x100

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3 years ago

Which statement best describes the role of a credit agency?

tekilochka [14]

Answer:

The statement best describes the role of a credit agency is "It tracks the use of credit for lenders"

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3 years ago

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Travka [436]

Answer:

focuses on decisions about the production and delivery of a firm's products and services.

Explanation:

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2 years ago