When using the indirect method, adding an increase in an account such as Wages and Salaries Payable to net income eliminates the effect of recording Wages and Salary Expense that <u>according </u>this period.
<h3>What is
net income?</h3>
Sales are subtracted from cost of products sold, selling, general and administrative expenditures, operating expenses, depreciation, interest, taxes, and other expenses to arrive at net income (NI), also known as net earnings. Investors can use this figure to determine how much a company's revenue exceeds its costs. This figure is a measure of a company's profitability and may be found on the income statement.
- Revenues less costs, taxes, and interest equal net income (NI).
- NI is used to compute earnings per share.
- Because costs can be concealed via accounting techniques or revenues can be artificially overstated, investors should carefully examine the data used to calculate NI.
- In addition, after deducting taxes and deductions from gross income, NI is a person's total income or pre-tax income.
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Answer:
Net cash used by investing activities -$16,000
Explanation:
The computation of the amount of net cash provided or used by investing activities is shown below:
Equipment purchase for cash -$66,000
Proceeds from the sale of equipment $50,000
Net cash used by investing activities -$16,000
The purchase is a cash outflow so it is in negative sign while the sale is cash inflow so it is to be shown in a positive sign
The answer in this question is 105,546 dollars. The present value of the annuity is ($60,000 × 1.75911) or 105,546 dollars. The formula to get the present value of annuity is $60,000 * 1.75911 so we can get an answer which is 105,546 dollars.
Answer:
The bonds are guaranteed as to principal and interest payments by the US government.
Explanation:
According to NASAA's Statement of Policy on Unethical or Dishonest Business Practices of Broker-Dealers and Agents, a broker can say US government bonds are guaranteed on principal and interest payments.
However if inflation sets in and interest rates rises there is no guarantee from the government that interest paid on the bonds will match the higher interest rate.
So legally this statement is correct, even though the investor can lose money as a result of higher interest rate in the future.
Answer:
FOR LIFE INSURANCE DENSITY