Answer:
The major advantage of multiple step income statement is that it breaks down the operating revenues and the costs incurred in the business.
It shows separated Gross profit which can be calculated as: Sales - COGS.
Apart from that, it shows separate Operating Income: Gross Profit - Operating expenses.
Lastly, it shows Net income: Operating income + non operating income.
Hence, concluded that, multiple step income statement offers a greater and detailed picture as compared to single step income statement.
Hope this helps.
Good Luck buddy.
Answer:
Saving = National Income - Consumption - Taxes
Explanation:
Savings are the part of income that is not spent or paid in taxes. So it can be calculated by subtraction consumption from the national income.
National Income (Y) = C+ T + S
Therefore,
S= Y - C - T
That is the part of income that is not spent or paid in taxes is called savings.
National Income Consumption Taxes Savings
$11,400 $7,500 $800 $3,100
$11,800 $7,800 $800 $3,200
$12,200 $8,100 $800 $3,300
$12,600 $8,400 $800 $3,400
Answer:
$900
Explanation:
As $1,000 is deposited in the account by Mr. Y in the Bank A. But the further requirement of the reserve is 0.10. So, it will amounts to:
Amount of reserve requirement = Amount deposited × Requirement of reserve
where
Amount deposited is $1,000
Requirement of reserve is 0.10
= $1,000 × 0.10
= $100
Therefore, the initial amount of the money that created by excess reserve is:
= Amount deposited - Amount of reserve requirement
= $1,000 - $100
= $900
Answer:
$987
Explanation:
Calculation to determine the amount to be added to the right-of-use asset and lease liability under the residual value guarantee
First step is to determine the Present value of $1: n= 4, i = 5%
Present value of $1: n= 4, i = 5%
Present value of $1=.8227
Now let calculate the amount to be added to the right-of-use asset and lease liability under the residual value guarantee
Using this formula
Amount added to right-of-use asset and lease liability=(Guaranteed -Actual)*Present value
Let plug in the formula
Amount added to right-of-use asset and lease liability=($39,800-$38,600)*.8227
Amount added to right-of-use asset and lease liability= $1,200*.8227
Amount added to right-of-use asset and lease liability=$987
Therefore the amount to be added to the right-of-use asset and lease liability under the residual value guarantee is $987
Here are my workings:
The answer would be= 1250/11 OR 113.6363636
I hope it helped you!
