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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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Suppose a hypothetical economy is currently in a situation of deficient aggregate demand of $16 billion. Four economists agree t
GarryVolchara [31]

Answer:

Economist A

Government spending multiplier $4billion

Tax multiplier $8billion

Economist B

Government spending multiplier $8billion

Tax multiplier $2billion

Explanation:

Computation for the amount the government would have to increase spending to close the output gap according to each economist's belief

ECONOMIST A

Government spending multiplier=16/4

Government spending multiplier=$4billion

Tax multiplier=16/2

Tax multiplier=$8billion

ECONOMIST B

Government spending multiplier=16/2

Government spending multiplier=$8billion

Tax multiplier=16/8

Tax multiplier=$2billion

Therefore the amount the government would have to increase spending to close the output gap according to each economist's belief are :

ECONOMIST A

Government spending multiplier=$4billion

Tax multiplier=$8billion

ECONOMIST B

Government spending multiplier=$8billion

Tax multiplier=$2billion

5 0
3 years ago
A production department's output for the most recent month consisted of 8,000 units completed and transferred to the next stage
sergiy2304 [10]

Answer:

e. 10,500 units.

Explanation:

<em>the equivalent units of production - direct materials</em>

<em>Note : Units in ending Work in Process inventory were 50% complete with respect to direct materials</em>

units in ending Work in Process inventory (5,000×50%)                = 2,500

units completed and transferred to the next stage (8,000×100%  = 8,000

Total                                                                                                    = 10,500

<em>the equivalent units of production - conversion costs</em>

<em>Note : Units in ending Work in Process inventory were 50% complete with respect to conversion costs</em>

units in ending Work in Process inventory (5,000×50%)                = 2,500

units completed and transferred to the next stage (8,000×100%  = 8,000

Total                                                                                                    = 10,500

5 0
3 years ago
The demand function is given by
Jlenok [28]

Answer:

Q=120−4P

Explanation:

putting P = 20 we get

q= 40

we know that elasticity is quantity demanded / price  

20

40

​  

=2

hence the correct option: D

5 0
3 years ago
Assume that a U.S. firm considers investing in British one-year Treasury securities. The interest rate on these securities is 12
MArishka [77]

Answer:

equal to the british interest rate

Explanation:

Data provided in the question

The Interest rate on these securities = 12%

In the U.S, the interest rate = 10%

Also the spot rate for today would become suitable for the spot rate

Based on the above information, the effective yield on the british securities would be equivalent to the british interest rate and hence the same is to be considered

7 0
2 years ago
One of the principles of hierarchy is a clear ______ chain of command.
Genrish500 [490]

Answer: One of the principles of hierarchy is a clear <u>vertical </u>chain of command.

Hope this helps!

4 0
2 years ago
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