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
Alik [6]
2 years ago
8

Corporations report which of the following in a separate section of the income statement?A. cost of goods sold.B. income tax exp

ense.C. gross profit.D. other revenues and gains
Business
1 answer:
Gemiola [76]2 years ago
5 0

Answer:

B. Income Tax Expenses

Explanation:

The Purpose of the Income Statement in Financial Statement Preparation is to ascertain the profit or loss of a business entity for a particular year. Usually, the format is as follows:

1. Gross Profit= Sales- Cost of Goods sold(Opening Inventory + Purchases- Closing Inventory)

2. Net Profit/ Net Loss = Gross Profit + Other Revenues and Gains - Expenses for the period.

However, income tax expense is only calculated when the net profit has been ascertained. It is usally referred to as net income before tax. It is based on this figure, that the income tax expense is then calculated based on prevailing income tax percentage.

Every other part of the income statement covers a section, but all sections should be calculated and concluded before the income tax expense can be calculated and then subtracted to arrive at the final income tax.

You might be interested in
The market system is also known as ________, while the command system is also known as ________.
Afina-wow [57]

The market system is also known as capitalism, while the command system is also known as communism. The market system is owned by private ownership, businessman and companies, hence it has capitalism concept. The command system is owned by a community or public.

Hence it can be said that

The market system is also known as <u>capitalism</u>, while the command system is also known as <u>communism</u>.




3 0
3 years ago
Bear Tracks, Inc., has current assets of $2,280, net fixed assets of $10,400, current liabilities of $1,405, and long-term debt
Vera_Pavlovna [14]

Answer: $7185

Explanation: Shareholders equity refers to the amount of funds that are collected by the company by selling their ownership rights in the market to the general investors.

As per the subject matter of accounts, every asset that is owned by an organisation is either financed by the available funds or some liability is taken to buy it. This could be illustrated as follows :-

assets =  shareholders equity + liabilities

Putting the values into equation we get :-

$2280 + $ 10,400 = $1,405 + $4090 + shareholders equity

therefore :-

shareholders equity = $7185

6 0
3 years ago
Discuss the potential problems for a business which does not keep adequate business records. (8 marks)
polet [3.4K]

it's mostly custumer service most of the time of take care of that mostly ok

4 0
3 years ago
Which of the following statements is false? Multiple Choice Prepaid insurance is a deferred expense. Prepaid insurance represent
inna [77]

Answer:

B. Prepaid insurance is shown on the income statement

Explanation:

Prepaid insurance first and foremost is a current asset and as such will not reflect in the income statement but in the statement of Financial Position or Balance Sheet.

Although, prepaid insurance will be shown as paid within the year, it must be deducted from the insurance premium paid for the current year and then reported in the balance sheet as a current asset.

Prepaid insurance is treated as a current asset because it is an indication of insurance premiums paid for by the company in advance. It is a payment for economic benefits that will be enjoyed in the future, therefore it is a current asset. The only part of an insurance premium that shows in the income statement is the insurance expense paid for insurance benefit enjoyed in the current period

3 0
3 years ago
newspaper publisher uses roughly 800 feet of baling wire each day to secure bundles of newspapers while they are being distribut
tresset_1 [31]

Answer:

Explanation:

Reorder point quantity is the level at which an inventory is expected to be restocked , calculated by finding the sum of demand over the lead time and the safety stock days

Daily usage = 800 feet / day

Lead time = 6 days

Desired service level = 95%

Risk level = 1-0.95 =0.05

safety stock at 0.05 = 1800

Reorder point = expected demand  in (LT) + safety stock

= (800*6) + 1800

= 4800+1800 = 6600 feet.

3 0
2 years ago
Other questions:
  • What piece of information is most helpful when you're comparing investments?
    12·1 answer
  • A common rule is that housing expenses plus other debt payments should not be more than 36% of your monthly income your monthly
    14·1 answer
  • Consider this argument: "the kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. i
    6·1 answer
  • Year-to-date, Oracle had earned a −1.53 percent return. During the same time period, Valero Energy earned 8.07 percent and McDon
    5·1 answer
  • A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time p
    10·1 answer
  • The type of interest earned on a deposit account that is calculated on both the principal deposit
    11·1 answer
  • Begin with a single sum of money at period 0. First, calculate a future value of that sum at 12.01%. Then discount that future v
    11·1 answer
  • A cut in direct taxes on households' income
    8·1 answer
  • In Lean/JIT systems the burden of ensuring quality of production inputs from vendors shifts from the _____________ to the ______
    14·1 answer
  • Serena the Chief Financial Officer has a decision to make. She has to rank several alternatives for purchasing a new piece of eq
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!