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mr_godi [17]
3 years ago
13

What is an advantage of using the multiple-step income statement?

Business
2 answers:
riadik2000 [5.3K]3 years ago
7 0

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.

notsponge [240]3 years ago
7 0

Answer:

It clearly states the gross profit of a firm

Explanation:

Income statement can be defined as the earnings report or a profit and loss statement during a specific period of time. It is the summary of the fiscal operation of a firm during a time frame. The period of time could be quarterly or annually.

We have multiple step income statement produced by companies with specific business structure and single step income statement are produced by other companies.

Multiple step income statement has an advantage of helping firms to clearly state their gross profit.

Gross profit= Sales revenue - Cost of goods

It also gives insight to operating profit of a firm.

Operating Profit= Gross profit - operating expenses

Multiple step income statement helps to state all sources of income and expenditure of a firm.

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denis23 [38]

One of the first technologies to truly revolutionize the business use of information was a stone tablet. FALSE.

Answer: One of the first echnologies to truly revolutionize the business use of information were paper and the printing press.

When these developments came about, they made it easier for communication to be shared between businesses, cities, and the economy. Allowing for paper and the printing press increased communication and made room for new jobs. As they grew and expanded, new people were hired which helped the economy get a boost of new funds.

3 0
2 years ago
Revenues and gains included in arriving at net income that do not provide cash.
zhenek [66]

Answer:

Non-cash revenues.

Explanation:

Non-cash revenues can be defined as revenues and gains included in arriving at net income that do not provide cash.

Basically, on the statement of cash-flow, non-cash revenues are considered not to be a real cash-flow because they don't add to the total inflow of cash.

Some examples of noncash revenues are amortization of premium relating to bonds payable, cash flow from investments that are carried under the equity method, accrued revenues, and gains from disposals of non-current assets.

7 0
2 years ago
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RUDIKE [14]

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2 years ago
Read 2 more answers
An employee in your organization has started to work from home two days a week. The employee uses the same company laptop at the
Lisa [10]

Answer:

Explanation:

From the question we are informed about An employee in my organization who has started to work from home two days a week. The employee uses the same company laptop at the office and at home. The laptop automatically connects to the wireless network in the office, but it does not automatically connect to the employee's home wireless network. The employee would like the laptop to connect automatically both at home and at work. In this case

what can be done is that an an alternate TCP/IP configuration should be configured on the wireless adapter of the laptop, so that static IP address that is compatible with the network at home can be used.

8 0
2 years ago
Airline Accessories has the following current assets: cash, $109 million; receivables, $101 million; inventory, $189 million; an
olchik [2.2K]

Answer:

The current ratio is 2.75

The acid-test ratio is 1.36

Explanation:

In order to calculate the current ratio we would have to make the following calculatio:

Current Ratio =Current Assets/Current Liabilities

Current Assets = Cash + Receivables + Inventory + Other current assets

= 109 + 101 + 189 + 25 = $424 million

Current Liabilities = Accounts Payable + Current portion of long term debt = 112 + 42 = $154 million

Therefore, current ratio=$424/$154

current ratio= 2.75

In order to calculate the acid-test ratio for Airline Accessories we would have to make the following calculation:

Acid - Test Ratio =Cash + Receivables/Current Liabilities

Acid - Test Ratio=$210/$154

Acid - Test Ratio=1.36

7 0
3 years ago
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