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
The market mechanism benefits society by ensuring that ________.
Ray Of Light [21]
The market mechanism benefits society by ensuring that: <span>scarce resources are channeled into products most desired by society
Market mechanism determines which products stays or go by relying purely on the force of supply and demand. If the products are desired by the customers, the producer will always keep up with the demand in order to rake in the potential profit.</span>
8 0
3 years ago
Read 2 more answers
4. Now that you have calculated the number of workers needed each period in Problem 3, Tameka wants to see how the plan would ac
Orlov [11]

Answer:

47

Explanation:

i know it

8 0
3 years ago
What is unique about a dual-axis chart?
Semmy [17]

Answer: B

Or Data is charted by two different types of data.

Explanation:

I got it right

3 0
3 years ago
Liability for contracts formed by an agent depends on how the principal is classified and on whether the actions of the agent we
charle [14.2K]
<span>Liability for contracts formed by an agent depends on how the principal is classified and on whether the actions of the agent were authorized or unauthorized. Principals are classified as disclosed, partially disclosed or undisclosed.

A liability contract is used when someone is liable for causing bodily harm or injuries to another person. These are contracts and legally binding documents. If someone id undisclosed, they don't share all of the information. Disclosed is when the information is fully shared. Partially disclosed is when someone says they have a principle but do not disclose all of the information. 
</span>
7 0
3 years ago
Planet Company purchased goods worth $50,000 in July and expects to purchase goods worth $70,000 in August. Planet typically pay
trapecia [35]

Answer:

57,000

Explanation:

Planet company purchases goods worth $50,000July and also expect to purchase goods worth $70,000 in August

They pay 35% of tbs purchase in the month and 75% in the following month

Therefore the total expected cash disbursement can be calculated as follows

= (70,000×35/100)+(50,000+65/100)

= {70,000×0.35) + (50,000+0.65)

= 24,500+32,500

= 57,000

6 0
2 years ago
Other questions:
  • A fee paid by a borrower to the lender for the use of borrowed money
    7·1 answer
  • Before starting a business, an entrepreneur should consider the following sacrifices: a. Professional b. Financial c. Personal d
    9·1 answer
  • The following information pertains to Sooner Company's cash balance and bank reconciliation as of August 31: Company balance bef
    7·1 answer
  • Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies fo
    15·1 answer
  • The screening process involves . A. choosing a setting to have group B. deciding how to publicize C. choosing a co-leader D. int
    9·1 answer
  • g "9. (a) Explain how financial ratio analysis of a firm’s projected cash flow budget could be efficiently used by its managers
    13·1 answer
  • An individual who believes that an action is ethical because others within his or her company and industry regularly engage in t
    6·1 answer
  • Toan Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at t
    14·1 answer
  • Furniture purchase for cash in accounting equation​
    8·1 answer
  • 1. Bob bought a $135,000 term life insurance policy. He is 35 years old and does not smoke. Find
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!