The three most frequent misconceptions are that net income equals cash, net income excludes estimates, and net income reports all changes in value that occurred during the accounting period.
One of the three crucial financial statements used to describe a company's financial performance throughout a certain accounting period is the income statement. The balance sheet and the cash flow statement are the other two important statements. The income statement, which is often referred to as the profit and loss (P&L) statement or the statement of revenue and expense, primarily focuses on the company's revenue and expenses over a specific time period. Understanding how to study an income statement is the greatest approach to evaluate a business and choose whether or not to invest.
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The answer to this is 0.08 hope that this helped
Answer:
Option (d) is correct.
Explanation:
Given that,
Average variable cost = $0.30 for each donut
Fixed cost: Cost of rent and machinery = $20,000
If the number of donuts produced and sold in one year is 36,500, then
Average fixed cost:
= Total fixed cost ÷ Number of units sold
= $20,000 ÷ 36,500
= $0.547 or $0.55
Therefore, the average fixed costs be $0.55 if she sells 36,500 donuts in one year.
Answer:
$162,200
Explanation:
The computation of the cost recorded in the asset account is shown below:
= List price - cash discount + freight cost + installation charges
= $160,000 - $3,200 + $2,400 + $3,000
= $162,200
The cash discount is computed below:
= List price × cash discount percentage
= $160,000 × 2%
= $3,200
All other information which is given is not relevant. Hence, ignored it
Answer:
$90
Explanation:
Victor's Vacuum Sales Co. sells high quality vacuums and provides a one-year warranty on all new sales. Based on history, Victor anticipates that 3% of vacuums will be returned at a cost of $30 per vacuum. During the month, Victor sold 100 vacuums for a total of $35,000. At the end of the month, Victor will record $90 in Warranty Expense.
100 x .03 x $30 = $90
