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3 years ago

31. Why is a profit and loss statement useful for a business? (1 point)

Business

2 answers:

Gnoma [55]3 years ago

5 0

Answer:

Option( D)

It consolidates essential information about the business.

Explanation:

The Profit & Loss account describes different business activities such as expenses and revenues of the business, particularly useful in finding out the risk of not achieving the required one and planned the level of income in the future.

It also gives us information required to find out tax obligations.Hence, profit and as well as loss statement is useful for a business by providing various important information about the business

rewona [7]3 years ago

4 0

Answer:

D It consolidates essential information about the business.

Explanation:

The Profit and Loss statement, commonly known as PyL is the statement that consolidates the operation in each period. In general, it is useful to determine: the revenues, the operating profit, The EBITDA (Earnings Before Interests and Taxes plus Amortization and Depreciation), the Profit before taxes and the net profit.

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Which of the following is an example of institutional advertising?

timofeeve [1]

Answer:

Explanation:

Institutional advertising is when your trying to promote a company and not just a product. In example A it is promoting a hand cream. In example C it is promoting a grass seed. and in example D is is promoting the model with more power. Although in example B it gives out the key word Our products meaning that it is talking about the company's products/ company. Thus based on the definition it is B.

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3 years ago

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Adjusting entries are Select one: a. usually required before financial statements are prepared b. not necessary if the accountin

Flauer [41]

Answer:

Correct option is (a)

Explanation:

Adjusting journal entries are passed before financial statements are prepared to so as to confirm if revenue recognition and matching principles are complied with. Adjusting entries are required to be passed if transactions is spread over multiple financial periods. For example, adjusting entry is passed if goods are received this year but payment will be made next year.

Before income statement and balance sheet is prepared, these entries are passed. Thereafter, adjusting trial balance is prepared and finally financial statements are prepared.

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3 years ago

How is a subculture different from a culture?

Yuri [45]

Answer:

Culture is the ability to define a group of people. subculture is a group within a culture that differs from the general consensus.

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3 years ago

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The following information relates to Sheridan Company for the year 2022.

aliina [53]

Answer:

a. Computation of net income

Particulars Amount

Service revenue $52,500

Less: Expenses

Salaries and wages expenses ($23,520)

Utilities expense ($2,600)

Rent expense ($8,740)

Advertising expense ($1,510)

Net Income $16,130

b. Computation of comprehensive income statement

Particulars Amount

Net Income $16,130

Add: Other Comprehensive Income $380

Comprehensive Income $16,470

Note: Dividend will not be included as it forms part of Income statement

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3 years ago

Evergreen Corporation distributes land with a fair market value of $200,000 to its sole shareholder. Evergreen's tax basis in th

Lady_Fox [76]

Answer:

True

Explanation:

As for calculating the gain or loss on distribution of any asset, in any case the company shall consider the fair market value at the time of distribution, and accordingly, the gain or loss shall be:

Fair market value - Tax basis of such asset.

Here, in the given instance

Fair market value of land = $200,000

Tax basis of land = $50,000

Thus, gain on distribution = $200,000 - $50,000 = $150,000

This will not be different in any case, whether the earnings are positive or negative.

Therefore, the statement is True

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3 years ago