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3 years ago

What is an annual pre tax income

2 answers:

7 0

Pretax earnings are a company's earnings after all operating expenses, including interest and depreciation, have been deducted from total sales or revenues, but before income taxes have been subtracted.

shutvik [7]3 years ago

5 0

<span>Pretax earnings are a company's earnings after all operating expenses, including interest and depreciation, have been deducted from total sales or revenues, but before income taxes have been subtracted.</span>

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Please also provide step by step explanation/ working thank you Live Wire Hot Rod Shop follows the revenue recognition principle

N76 [4]

Answer:

B. July 31

Explanation:

Revenue recognition principle assumes that revenues are recognized when they are realized or relizable and are earned, in respective of when payments are received.

It states that one should only record revenue when it has been earned, not when the related work payments is collected. Also, money paid in advance for a work should be recorded as a liability not revenue.

Since Live Wire services uses revenue recognition principles, then the day they'd record it as revenue is thesame day the job was done and completed which was July 31st.

6 0

3 years ago

Assume that the custodian of a $675 petty cash fund has $137.50 in coins and currency plus $517.50 in receipts at the end of the

frutty [35]

Answer:

Entry to replenish

Dr. Expenses $517.5

Dr. Cash Short $20

Cr. Cash (675-137.5) $537.5

Explanation:

Petty cash is a small amount of fund which is kept in the business for day to day expenses. Cash is issued from this fund for daily small expense which is not appropriate to withdraw from the bank by check.

The difference between the expenses receipts and cash outflow is cash excess or short.

In this question there is a cash shortage because the cash payment is more than the receipt received / available.

8 0

3 years ago

Barclay enterprises manufactures and sells three distinct styles of bicycles: the youth model sells for $340 and has a unit cont

insens350 [35]

Answer: 48.9%

Explanation:

Model - - - - - - Selling price - - - - cont/margin

Youth - - - - - - $340 - - - - - - - - - - - $115

Adult - - - - - - - $870 - - - - - - - - - - - $460

Recreational - - $1060 - - - - - - - - - $510

Contribution margin per composite unit

Youth = $115 × 5 = $575

Adult = $460 × 9 = $4140

Recreational = $510 × 6 = $3060

TOTAL = $7775

Selling price per composite unit:

Youth = $340 × 5 = $1700

Adult = $870 × 9 = $7830

Recreational = $1060 × 6 = $6360

TOTAL = $15890

Contribution margin ratio per composite unit ;

($7,775 ÷ $15,890) × 100

0.4893 × 100 = 48.9%

8 0

3 years ago

An investor deposits $50,000 in a money market accounts that pays 4%. How much money he will have at the end of 5 years. (Use th

Alona [7]

Investment, PV = $50000

Interest = 4%

Money at the end of 5 years = 50000 * (1+4%)^5 = $60833, if money is deposited at the beginning of the first year.

Money at the end of 5 years = 50000 * (1+4%)^4 = $58493, if money is deposited at the end of the first year.

8 0

2 years ago

Treasury stock represents stock that: a. is being held to purchase treasury securities. b. is being held to purchase preferred s

mixer [17]

Answer:

The correct answer is (D)

Explanation:

Sometimes firms and organisations try to reduce the outstanding stocks in the market. To do so, they purchase back some of those stocks from the open market, such stocks are known as treasury stocks. After that, It is up to the issuer, they can resell it to the public or they can dissolve them completely. After purchasing back, these stocks are no longer considered outstanding.

6 0

4 years ago