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3 years ago

Which of the following is prepared first? A. Balance sheet B. Income statement C. Statement of owner’s equity D. Trial balance

1 answer:

7 0

The income statement is prepared first. The income statement i<span>s a financial statement that reports the company's financial performance (profit and loss) over a specific accounting period. It describes how the business incurs its revenues and expenses, and it is also referred as </span>profit and loss statement (P&L). With help of this report management knows if the business made money during the period reported.

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uranmaximum [27]

Answer:

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3 0

3 years ago

Read 2 more answers

If this game is played only once, then the most likely outcome is that a. both firms produce a good quality product. b. both fir

EleoNora [17]

Answer:

a. both firms produce a good quality product.

Explanation:

There are two companies Acme and Pinnacle that can either make good or poor products, which generate a table of four possible outcomes, that is, either they both make good products or not or either company makes good or poor products.

Assuming this was a game that was played once, the table drawn shows that the first outcome is that both companies make good products with a profit margin of $6 million.

4 0

3 years ago

Countries A,B, and C with respective total populations 50 million, 18 million, and 15 million also have annual GDP as:

gogolik [260]

Answer: D. A = $8560 ,B= $11111 and C= 466$

Explanation:

Country A

Annual GDP = $428 billion

Population = 50 million

Annual GDP per person = $428 billion / 50 million = $8560

Country B

Annual GDP = $20 billion

Population = 18 million

Annual GDP per person = $20 billion / 18 million = $1111

Country C

Annual GDP = $7 billion

Population = 15 million

Annual GDP per person = $7 billion / 15 million = $466.

The correct option is D.

5 0

3 years ago

The process of determining the present value of future cash flows in order to know their worth today is referred to as:______.

RoseWind [281]

Calculating the present value of a cash flow or series of cash flows that will be received in the future is the process of discounting.

A value obtained in the future is converted to an equivalent value received right away through the process of discounting. Discounting determines this relative value, so a dollar received in 50 years may be worth less than a dollar received today. Using the aforementioned method, the discounting process assists an investor in estimating the investment's value in current dollars at the investor's desired rate of return. Due to the opportunity cost of spending money now and the desire to enjoy advantages now rather than in the future, discounting makes current costs and benefits more valuable than those that will occur in the future. A discount factor in financial modeling is a decimal number multiplied by a cash flow value to reduce it to its present value. As the effect of compounding the discount rate accumulates over time, the factor grows (i.e., the decimal value shrinks).

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3 0

1 year ago

Indiana Co. bega n a construction project in 2018 with a contract price of $150 million to receive when the project completed in

Liula [17]

Answer: C) Recognized $9 million gross profit on the project in 2018.

Explanation:

Duration of construction project from 2018 to 2020 = 3 years

Cost incurred by Indiana co. in 2018 = $36 million

Estimated additional cost for the remainder of the project = $84 million

Total cost to be incurred over the duration of the project = $36 million + $84 million = $120 million

To calculate the percentage of the project completed, we use the cost figures;

Cost incurred so far (in 2018) ÷ Total cost to be incurred × 100

36,000,000/ 120,000,000 × 100 = 30%

Total revenue from contract (which is the contract price) = $150 million

Indiana Co. recognizes revenue according to the percentage of the project completed. Therefore, revenue recognized after 30% of the project is completed (which is the revenue for 2018) = 30% of $150,000,000

Revenue for 2018 = 30/100 × 150,000,000 = $45,000,000

Profit recognized on the project in 2018 = Revenue for 2018 - Cost incurred in 2018

Profit = $45,000,000 - $36,000,000

Gross profit recognized in 2018 = $9,000,000

5 0

2 years ago