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
Akimi4 [234]
3 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:
muminat3 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.

monitta3 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.

You might be interested in
Identify a type of market failure. Provide an example of that type of market failure and briefly explain one way that the govern
Rufina [12.5K]

Monopoly power, inefficiency, absent markets, and other factors can all result in market failure. Government is help to reduce the negative effect of that market failure such as implemented taxes and laws. An example of a market failure is music application.

What is market failure?

When we talk about "market failure," we're talking about an economy where there is an inefficient flow of commodities and services on the open market.

Inefficiency, absent markets, insufficient markets, and negative externalities are the main forms of monopoly power. audio player: All listeners hear the song, yet it cannot affect them directly. It is unable to determine whether or not a user has paid.

The government must address market failure issues brought on by additional regulations, taxes, tariffs, subsidies, and trade restrictions.

As a result, monopoly power, inefficiency and missing markets types of market failure. Government implemented taxes and laws. Ex of music app.

Learn more about on market failure, here:

brainly.com/question/13123538

#SPJ1

3 0
2 years ago
The campus bookstore sells​ 4,000 sets of graduation regalia each year. Placing an order from their supplier costs​ $25 regardle
poizon [28]

Answer:

$4050

Explanation:

Please see attachment

4 0
3 years ago
You own a portfolio that has $2,800 invested in Stock A and $3,900 invested in Stock B. Assume the expected returns on these sto
Luden [163]

Answer:

12.5%

Explanation:

A portfolio has $2,800 invested in stock A

$3,900 is invested in stock B

The expected return of stock A is 9%

= 9/100

= 0.09

The expected return of stock B is 15%

= 15/100

= 0.15

The first step is to calculate the total value

= $2,800+$3,900

= $6,700

Therefore, the expected return on the portfolio can be calculated as follows

= (2,800/6,700)×0.09 + (3,900/6,700)×0.15

= 0.4179×0.09 + 0.5820×0.15

= 0.03761 + 0.0873

= 0.1249×100

= 12.5%

Hence the expected return on the portfolio is 12.5%

7 0
3 years ago
Annual Percentage Rate (APR), credit limit, and penalties
Artyom0805 [142]

Answer:

Choosing a credit card.

Explanation:

A credit card is a plastic rectangular card issued by financial institutions such as banks, that allows the cardholder to purchase goods or services from merchants on credit.

Credit cards offers it's users convenience to access a line of credit and thus, eliminates the need to carry cash (money) or check around.

The important criteria to consider when choosing a credit card are;

1. Annual Percentage Rate (APR).

2. Credit limit.

3. Penalties and fees.

4. Cash back.

3 0
3 years ago
Love Company’s accounting records show an after-closing balance of $42,100 in its Retained Earnings account on December 31, 2018
konstantin123 [22]

Answer and Explanation:

  • Closing Balance (Retained earning ) of 31 Dec 2018 is called Opening Balance of 1 Jan 2019 , i.e. $42,100
  • There is no particular information provide for 1 Jan 2018 .So, assume there is Zero balance of retained Earning
  • Calculation of retained earning of 31 Dec 2017

Retained earning                             $42,100

Less: revenue during the year        $19,400

Add: Expenses During the year      $9,800

<u>Add : Dividend                                  $500 </u>

Retained earning on 31 Dec 2017 $33,000

  • Retained earning is a temporary account So, $33,000 is balance of Retained earning At 30 June 2018.
4 0
3 years ago
Other questions:
  • Suppose a local McDonalds increases prices of hamburgers form $2 to $2.50. What will happen to the quantity of McDondalds hambur
    8·1 answer
  • If the price of good X increases by 2%, and that causes the quantity demanded of good Y to increase by 10%, then the cross-price
    15·1 answer
  • Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has incr
    13·1 answer
  • Impression management is behavior by which people control how they come across to _________. Some of this behavior is deliberate
    9·1 answer
  • Suppose that Spain and Germany consider trading shoes and jeans with each other. Spain can gain from specialization and trade as
    6·1 answer
  • Todd Haitz works at a retail store selling sports equipment. His daily tasks include opening the store, creating the work schedu
    9·1 answer
  • The maturity date of a note receivable: Multiple Choice
    7·1 answer
  • List 3 physical side effects of anger/stress and explain how they can impact your driving.
    7·1 answer
  • Sunland Company owns equipment that cost $73,000 when purchased on January 1, 2019. It has been depreciated using the straight-l
    9·1 answer
  • A product with a low level of elasticity of demand has which feature?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!