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Akimi4 [234]
2 years ago
12

The difference between a​ firm's operating income and income before taxes is​ _____. The difference between a​ firm's ​before-ta

x accounting profit and ​after-tax accounting profit is​ ____. A. ​taxes, investments B. ​investments, taxes C. ​owner's equity, current liabilities D. cost of goods​ sold, taxes
Business
2 answers:
muminat2 years ago
8 0

Answer:

The correct answer is B. ​investments, taxes.

Explanation:

BAIT is an accounting indicator of the profitability of a company that is calculated as income minus expenses, excluding taxes and interest that the company has to pay from expenses.

BAII or BAIT is also known as an operating result or EBIT (Earnings Before Interest and Taxes).

BAII = Revenue - Cost of goods sold - Operating expenses

It is a ratio widely used in financial analysis because it is very easy to compare between companies and not including taxes or interest avoids discrepancies that arise between different forms of capital and tax rates paid by companies. It is used to perform the Dupont analysis and calculate the ROE, among other ratios.

BAI is the acronym for Profit Before Tax. As its own name points out, it is an indicator of the operating result of a company without taking into account taxes. The BAI is reached after subtracting operating expenses from income. It would therefore be the gross profit, without going through the magnifying glass of the Treasury and of the banks or other creditors.

The BAI is an indicator used to measure the progress of the business, since it can be compared annually or quarterly to see its evolution. Therefore, it is a regular income statement.

monitta2 years ago
3 0

Answer: Option A

Explanation: Operating income refers to the income that the company earns from performing its core operations. It is also denoted as EBIT. Thus, the difference between operating income and income after tax is the tax that has been deducted from the operating income.

While calculating accounting profit, opportunity cost is not deducted from the revenue hence before tax and after tax depicts the investments that were made to earn that profit.

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You start a new business selling a product thats the best of its kind on the market. In addition to this product, what must you
aleksandrvk [35]

Answer:

A. Good marketing

Explanation:

Every organization, regardless of the segment or product it sells, must develop a consistent marketing strategy.

A company that sells a product that is the best of its kind on the market, must invest in an effective strategy so that the product is known to consumers, is competitive and correctly distributed. The five p's of marketing can be a good strategy to correctly position the product on the market, as it involves strategic development for the product, price, promotion, place and people.

7 0
2 years ago
Income statement information for Einsworth Corporation follows: Sales $1,500,000 Cost of goods sold 900,000 Gross profit 600,000
Semenov [28]

Answer:

A vertical analysis income statement uses Sales as a base and makes everything else a percentage of sales.

                                            Vertical Analysis Statement

                                                     Amount                     Percentage

Sales                                       $1,500,000                         100%

Cost of Goods sold                ($900,000)                          60%

Gross Profit                               $600,000                          40%

Cost of Goods sold percentage = 900,000 / 1,500,000

= 60%

Gross Profit percentage = 600,000 / 1,500,000

= 40%

6 0
2 years ago
1) Explain in brief the creations of controlled environment for off season vegetable farming.
Orlov [11]

Answer:

1.the off season vegetable production can be obtained by different ways such as taking use of and utilise various agro climatic condition improve writing choosen adjustment of planting time making plastic tunnels polythene house and permanent glass house to provide control environmental conditions.

2the of seasonal vegetable are those vegetable which can be grown in rainy season using technology The main advantage of off season vegetable is that ensure food security for example tomato can be grown every time using a tunnel of greenhouse technology are genetically modified seed.

3 0
2 years ago
An accountant has encountered a perplexing financial reporting issue related to the private college for which he is preparing fi
frez [133]

Answer:

c) AICPA accounting and auditing guide, Audits of Colleges and Universities and/or AICPA SOP 74-8, Financial Accounting and Financial Reporting by Colleges and Universities.

Explanation:

As accounting and auditing guide which is issued by AICPA for health care 3 gives full guidance on how to deal with financial reporting issues for the hospital so the accountant would look into it for any problem related to it.

8 0
2 years ago
The government sector balance is equal to net taxes​ ________ government expenditure on goods and services. If that number is​ _
Dovator [93]

Answer:

less

positive

negative

Explanation:

The government sector balance is income from taxes less government spending

Government sector deficit occurs when government spending exceeds income of the government.

When deficit increases, debt increases. This is because a deficit would need to be funded by additional borrowing

When there is a surplus, government spending is less than the income of the government. Government is able to lend to other sectors

7 0
3 years ago
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