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2 years ago

The income statement lists all the

Business

1 answer:

olchik [2.2K]2 years ago

6 0

Answer:

A. revenue and expense

Explanation:

An income statement is among the three important financial statements prepared by a business entity. It summarizes all incomes (revenues) and expenses (costs) of a company in a particular financial year. Total costs are subtracted from the total revenue to get the net income.

An income statement is prepared to show the profits of a business in a particular financial year. A positive net income indicates profits, while a negative net income denotes losses.

You might be interested in

How much cash flow an $400 000 investment can produce?

Zanzabum

Can totally vary. Normally, it can create 1,000 dollars up to 2,000 dollars if it's a good investment.

3 0

2 years ago

Maria is going to take out a loan with a principal of $19,700. She has narrowed down her options to two banks. Bank M charges an

Vadim26 [7]

Answer:

Loan principal amount = $19,700

Bank M:

Interest rate charges = 7.1% compounded monthly

Loan will be paid off in = Five years

Bank N:

Interest rate charges = 7.8% compounded monthly

Loan will be paid off in = Four years

From the above information, we would recommend that Maria choose her loan from Bank M if she wants a lower monthly payments and Maria choose her loan from Bank N if she wants a lower lifetime cost.

3 0

3 years ago

A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. the bond cur

bogdanovich [222]

Answer:

5.72%

6.83%

2.86%

Explanation:

The rate of return bondholders receives on a callable bond until the call date is called Yield to call.

Yield to Call = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Assuming $1,000 is the face value of bond.

Yield to Call = [ ($1,000 x 8% x 6/12 ) + ( $1,000 - $1,100 ) / (5 x 2) ] / [ ( $1,000 + $1,100 ) / 2 ]

Yield to Call = [ $40 - 10 ] / $1,050 = 2.86% semiannually = 5.72% yearly

Yield to Call = [ ($1,000 x 8% x 6/12 ) + ( $1,000 - $1,050 ) / (5 x 2) ] / [ ( $1,000 + $1,050 ) / 2 ]

Yield to Call = [ $40 - 5 ] / $1,025 = 3.415% semiannually = 6.83% yearly

Yield to Call = [ ($1,000 x 8% x 6/12 ) + ( $1,000 - $1,100 ) / (2 x 2) ] / [ ( $1,000 + $1,100 ) / 2 ]

Yield to Call = [ $40 - 10 ] / $1,050 = 1.43% semiannually = 2.86% yearly

6 0

2 years ago

Tom's Tool Factory is an investment center and is responsible for all of its net income and the use of its assets. This year, th

hram777 [196]

Answer:

57.9 %

Explanation:

Return on investment (ROI) is a financial ratio. It is used to measure the expected returns from in relation to the cost of investment.

The formula for calculating ROI is Net Income / Cost of Investment.

For tom tools factory, the ROI will be

net income $275,000

cost of investmet is $475,000

ROI = 275,000/ 475,000

RO1 = 0.5789473 X 100

=0.5789473

=57.894 OR

=57.9 %

6 0

2 years ago

An agency problem can occur when A. it is difficult or expensive for the owners to verify what the agent is actually doing. B. t

GaryK [48]

Answer:

The answer is E.

Explanation:

In a public company, the directors are the agents of the company while the shareholders are the principals(owners) of the company. Because most times, shareholders doesn't have the needed skills and experience to run businesses, they employ director/management (agent) to run their businesses. Most times there is conflict of interest, for example, the managers might prefer a risky business while the shareholders might prefer less risky, this type of scenario creates agency problem.

Agency problem (principal-agent problem) is a conflict of interest that happens when the directors (agent) don't fully represent the best interest of the shareholders (principal)

So all the options in the question represents agency problem.

4 0

2 years ago