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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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The principal purpose of a statement of cash flows is to measure the profitability of a business that maintains its accounting r

Alexus [3.1K]

Answer:

False

Explanation:

The principal purpose of a statement of cash flows is to measure the profitability of a business that maintains its accounting records on the cash basis.

This is False because cash flows are also made for businesses that accounting records on the accrual basis rather than cash basis.

The cash flow is computed both by Direct and Indirect methods.

In indirect method of Cash flow Net income is computed using accrual income which recognizes revenues when earned and expenses when incurred.

5 0

3 years ago

Read 2 more answers

Financial statement data for years ending December 31 for tango company follow

maxonik [38]

The inventory turnover for Tango company are: 4.8, 5.3.

<h3>Inventory turnover</h3>

Using this formula

Inventory Turnover = Cost Of Goods Sold / ((Beginning Inventory + Ending Inventory) / 2)

20Y7

Inventory Turnover =$3,864,000 /($770,000+$840,000)/2

Inventory Turnover=$3,864,000/$805,000

Inventory Turnover=4.8

20Y6

Inventory Turnover = $4,001,500 /($740,000+$770,000)/2

Inventory Turnover= $4,001,500 /$755,000

Inventory Turnover=5.3

Therefore the inventory turnover for Tango company are: 4.8, 5.3.

The complete question is:

Financial statement data for years ending December 31 for tango company follow

20Y7 20Y6

Cost of goods sold $3,864,000 $4,001,500

Inventories:

Beginning of year 770,000 740,000

End of year 840,000 770,000

Determine the turnover for 20Y7 and 20Y6.

Learn more about inventory turnover here:brainly.com/question/18914383

#SPJ1

8 0

1 year ago

Which living expense needs to be included in the budget of someone renting an apartment?.

scoundrel [369]

Answer:

insurance

Explanation:

a living expense that should be included in the budget when someone is going to rent an apartment should be the insurance

hope this helps

6 0

2 years ago

LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620

Gnom [1K]

Answer:

LeCompte Corp.

The profit margin that LeCompte Corp. would need in order to achieve the 15% ROE, holding everything else constant is:

A) 7.57%.

Explanation:

a) Data and Calculations:

Assets = $312,900

Common Equity = Assets = $312,900

Sales for the last year = $620,000

Net income after taxes = $24,655

Expected return on equity (ROE) = 15%

ROE (in amount) = $312,900 * 15% = $46,935

Profit margin = Returns on Equity/ Sales * 100

= $46,935/$620,000 * 100

= 7.57%

b) The expected returns on equity in dollars is equal to the net income. Therefore, we can use the ROE to calculate the profit margin. The profit margin expresses the relationship between sales and profit. It shows the profit made from each dollar sales.

4 0

2 years ago

Transactional leadership ______.

borishaifa [10]

Answer:

Letter c is correct. <em><u>Is found in the bulk of leadership models.</u></em>

Explanation:

The transactional leadership style is characterized by organization, supervision and performance. It is a common leadership model in most leadership models because it is based on goal achievement.

The leader behaves like a boss, requires compliance with organizational standards, and analyzes the performance of each employee to determine the matching reward. Transactional leadership is compared to the principles of Scientific Management, there are no concerns of the manager with motivational factors that influence the team, but with the fulfillment of demands and optimal organizational flow.

Despite being a less flexible leadership model, the benefits of the model are gained through the performance reward system, which positively influences employee productivity.

6 0

3 years ago