1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zepler [3.9K]
3 years ago
13

The distinction between operating and nonoperating income relates to: a. Continuity of income b. Reliability of measurements c.

Consistency of income stream d. Primary activities of the reporting entity
Business
1 answer:
blsea [12.9K]3 years ago
5 0

Answer:

d. Primary activities of the reporting entity

Explanation:

The operating income of an entity refers to the income earned by the entity from its normal course of business.

This is the income from activities defined in the company's memorandum and  article of association.

The nonoperating income is the income earned from sources not related to the ordinary activities of the company.

Examples include gains from investment property, sale of asset, foreign exchange gain/loss etc.

You might be interested in
Giorgio Italian Market bought $11,000 worth of merchandise from Food Suppliers and signed a 45-day, 8% promissory note for the $
Masja [62]

Answer:

                                                Dr.          Cr.

Purchases / Inventory         $11,000

Promissory Note Payable                  $11,000

Explanation:

Promissory note is a signed document which contains a written promise for payment of stated amount to specific person or bond holder on demand or specified date.

In this case the purchases are made and a promissory note of $11,000 is signed for 45 days at 8% annual rate.

This entry will be recorded as the purchases or Inventory are debited and as promissory note is a short term liability so, promissory note payable is credited resulting increase in inventory as well increase in current liability.

5 0
3 years ago
Puff Co. acquired 40% of Straw, Inc.'s voting common stock on January 2, Year 1, for $400,000. The carrying amount of Straw's ne
Sonbull [250]

Answer:

Investment revenue = $52,000

Explanation:

Since Puff uses the equity method, the original journal entry to record the purchase of 40% of the shares should have been:

Dr Investment in Straw 400,000

   Cr Cash 400,000

After one year, Straw earned $150,000 in net income, but it also had equipment with a fair market value higher than carrying value also depreciable by $100,000. So the net income must be adjusted = $150,000 - ($100,000 x 20%) = $130,000. The journal entry to record the adjusted income should be   ($130,000 x 40%):

Dr Investment in Straw 52,000

   Cr Investment revenue 52,000

8 0
3 years ago
A company uses the cost method of accounting for treasury stock. On January 1, the company repurchases 1,000 shares of stock at
Ksivusya [100]

Answer:

The credit on December 31 is to credit Treasury Stock with $15,000.

Explanation:

There are two methods for accounting for Treasury Stock.  The first is the par value method.  With this method, the Treasury Stock account is debited or credited with the par value for each transaction, while the difference in par value is taken to the Additional Paid-in Capital account.

Using the cost method, the Treasury Stock account is debited and credited with the value of each transaction and the Additional Paid-in Capital account is not affected.

This implies that under the cost method, the purchase and resale of treasury stock is recorded by debiting and crediting the treasury stock account by the actual cost of purchase and actual value of sale.

3 0
3 years ago
Jamal worked for a delivery company, and he was driving sometimes up to 10 hours a day. One afternoon, on the way back from maki
notsponge [240]

Answer:

Yes, the company is liable because Jamal was on his work route and took a minor detour to pick shirts he needed for work.

Explanation:

Generally what determines if the company is liable or not for a car accident, is if the employee was acting within the scope of his/her normal employment activities. In this case, even though Jamal took a break to pick up some shirts for work, he didn't deviate form his normal activities and not even from his normal work route. He was actually coming back from making a delivery.

It would have been different if he had gone to a different neighborhood or downtown just to pick the shirts. You must also consider that Jamal drives the delivery truck 10 hours a day, and that doesn't leave him a lot of spare time for his own personal activities, and this particular one was also related to his work.

This situation is similar to an accident happening when a truck driver is stopping to go to the bathroom or eating something while travelling.

8 0
3 years ago
which combination of forecasting models is likely to lead to the lowest rmse of the combined forecast?
Phantasy [73]

Combination of forecasting models is likely to lead to the lowest rmse of the combined forecast is AR and MA models.

Combining forecasts, from time to time called composite forecasts, refers back to the averaging of unbiased forecasts. These forecasts may be primarily based totally on special statistics or special techniques or both. The averaging is performed the usage of a rule that may be replicated, together with to take a easy common of the forecasts.

The AR element includes regressing the variable on its very own lagged (i.e., past) values. The MA element includes modeling the mistake time period as a linear mixture of mistakess phrases going on contemporaneously and at diverse instances withinside the past.

Learn more about forecasting here:

brainly.com/question/4941976

#SPJ4

8 0
1 year ago
Other questions:
  • The internal rate of return is:
    9·1 answer
  • Plastic Pretzels stock recently paid a dividend of $1.39 per share. The dividend growth rate is expected to be 3.60% indefinitel
    9·1 answer
  • Marv Company's direct labor costs for manufacturing its only product were as follows for October: Standard direct labor hours (D
    5·1 answer
  • In the context of organization development techniques, coaching and counseling: a. focus exclusively on increasing productivity.
    6·1 answer
  • A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month is given by upper c equals 0.
    5·1 answer
  • Match the term with what most needs to be clarified within the following examples.
    10·1 answer
  • Suppose the economy is in long-run equilibrium. Then because of corporate scandal, in- ternational tensions, and loss of confide
    10·1 answer
  • You are saving for retirement. To live​ comfortably, you decide you will need to save $ 4 million by the time you are 65. Today
    8·1 answer
  • Given the following, compute the cost of goods manufactured.
    15·1 answer
  • Involuntary unemployment occurs when the wage rate is below the equilibrium wage rate. exists when there is an excess quantity o
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!