How does the income/expenditure business in a catering business's income statement react to the company's balance...
Homework Answers
Answer: In a catering or any other business's income statement profit is shown as Gross profit, Operating profit and Net Profit. Net profit is the profit available for common shareholders. Profit is excess of revenue over expenditures. Credit balance in income statement is profit and debit balance is loss.
Profit in Balance sheet- In balance sheet, profit belongs to owner of the sole proprietorship or shareholders of the corporation. As we know that all business transactions affect two accounts at least.
Owner's equity or stockholder's equity will increase by the amount of Net profit. Some profit can be retained and not distributed, that can be shown as Retained earnings under the Shareholder's equity section under the head of "Liability & Shareholder's equity"
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How
does the income/expenditure business in a catering business's
income statement react to the company's balance...
Which one of the following statements best explains the most important difference between the balance sheet...
Which one of the following statements best explains the most important difference between the balance sheet and the profit and loss statement? The income statement presents the economic and operational results of financial performance of firms by considering revenues and expenses over a specific operating period. The balance sheet reflects the financial condition with its sections on a particular date or specific point in time. The balance sheet is prepared on cumulative basis (over a period of time, such as...
Which one of the following statements best explains the most important difference between the balance sheet...
Which one of the following statements best explains the most important difference between the balance sheet and the profit and loss statement? The income statement presents the economic and operational results of financial performance of firms by considering revenues and expenses over a specific operating period. The balance sheet reflects the financial condition with its sections on a particular date or specific point in time. The balance sheet is prepared on cumulative basis (over a period of time, such as...
How does the accounting system expressed in the balance sheet, income statement, and statement of cash...
How does the accounting system expressed in the balance sheet, income statement, and statement of cash flows contribute to the education of investors and other users of these financial statements?
Top managers of Tarrant, Inc. have asked you to compare the company's profit performance and financial...
Top managers of Tarrant, Inc. have asked you to compare the company's profit performance and financial position with the average for the industry. The company's accountant have given you the business's income statement, balance sheet, and industry data. Tarrant, Inc. Common-Size Income Statement Data Net sales Cost of sales Gross profit Operating expenses Operating income Other expenses Net income (loss) Tarrant, Inc. Industry Average $500,000 100.00% $355,000 57.30% $145,000 42.70% $120,000 29.40% $25,000 13.30% $7,500 2.50% $17.500 10.80% Tarrant, Inc....
22. The income statement and balance sheet columns of Iron and Purple Company's worksheet reflect the...
22. The income statement and balance sheet columns of Iron and Purple Company's worksheet reflect the following totals: Income Statement Dr. Cr. $79,000 $92,000 Balance Sheet Dr. Cr. $75,000 $62,000 Totals The net income (or loss) for the period is a. $92,000 income. b. $13,000 income. c. $13,000 loss. d. not determinable.
a. 1. Railroad Company received $2,000,000 for the issuance of common stock. How does this transaction...
a. 1. Railroad Company received $2,000,000 for the issuance of common stock. How does this transaction impact Railroad Company's income statement? Net income increases. b. Net income decreases. C. This transaction does not affect the income statement. d. Retained earnings increases. 2. Railroad Company reported $150,000 of net income during 2019. How will this impact the December 31, 2019 balance sheet? a. Retained earnings will increase by $150,000. b. Retained earnings will decrease by $150,000. C. Total stockholders' equity will...
Explain why the income statement can also be called a "profit-and-loss statement." What exactly does the wo...
Explain why the income statement can also be called a "profit-and-loss statement." What exactly does the word balance mean in the title of the balance sheet? Why do we balance the two halves? Explain why the income statement can also be called a "profit-and-loss statement." (Select from the drop-down menus.) t h at the top and ends with In reviewing the income statement of a profitable company, one can see that it begins with at the bottom. Had there been...
Goal: Create an Excel worksheet to prepare an income statement, a balance sheet and a statement...
Goal: Create an Excel worksheet to prepare an income statement, a balance sheet and a statement of changes in equity for a start-up business. Scenario: You have started a valet parking business called First Class Valet. You have tracked your cash, supplies, revenues, expenses, and other items in a spreadsheet. The totals for each account at the end of your first month are as follows (ignore GST): 1. Sales Revenues, $400 2. Supplies on hand (asset account), $175 3. Cash,...
Income statement _______ Click on an event in any transaction report b. Balance sheet _______ Click...
Income statement _______ Click on an event in any transaction report b. Balance sheet _______ Click an account on any report c. Statement of cash flows _______ Click to add a new column in a report d. AR aging report _______ Reflects unpaid bills for the current period e. AP aging report _______ Reports revenues and expenses f. Inventory valuation report _______ Includes operating, investing, and financing activities g. Profit and Loss report _______ Reports inventory quantities on hand h....
You have only the balance sheet and the income statement of a firm. How does one...
You have only the balance sheet and the income statement of a firm. How does one evaluate a firm’s financial health?
Which one of the following statements best explains the most important difference between the balance sheet and the profit and loss statement? The income statement presents the economic and operational results of financial performance of firms by considering revenues and expenses over a specific operating period. The balance sheet reflects the financial condition with its sections on a particular date or specific point in time. The balance sheet is prepared on cumulative basis (over a period of time, such as...
Which one of the following statements best explains the most important difference between the balance sheet and the profit and loss statement? The income statement presents the economic and operational results of financial performance of firms by considering revenues and expenses over a specific operating period. The balance sheet reflects the financial condition with its sections on a particular date or specific point in time. The balance sheet is prepared on cumulative basis (over a period of time, such as...
Top managers of Tarrant, Inc. have asked you to compare the company's profit performance and financial position with the average for the industry. The company's accountant have given you the business's income statement, balance sheet, and industry data. Tarrant, Inc. Common-Size Income Statement Data Net sales Cost of sales Gross profit Operating expenses Operating income Other expenses Net income (loss) Tarrant, Inc. Industry Average $500,000 100.00% $355,000 57.30% $145,000 42.70% $120,000 29.40% $25,000 13.30% $7,500 2.50% $17.500 10.80% Tarrant, Inc....
22. The income statement and balance sheet columns of Iron and Purple Company's worksheet reflect the following totals: Income Statement Dr. Cr. $79,000 $92,000 Balance Sheet Dr. Cr. $75,000 $62,000 Totals The net income (or loss) for the period is a. $92,000 income. b. $13,000 income. c. $13,000 loss. d. not determinable.
a. 1. Railroad Company received $2,000,000 for the issuance of common stock. How does this transaction impact Railroad Company's income statement? Net income increases. b. Net income decreases. C. This transaction does not affect the income statement. d. Retained earnings increases. 2. Railroad Company reported $150,000 of net income during 2019. How will this impact the December 31, 2019 balance sheet? a. Retained earnings will increase by $150,000. b. Retained earnings will decrease by $150,000. C. Total stockholders' equity will...
Explain why the income statement can also be called a "profit-and-loss statement." What exactly does the word balance mean in the title of the balance sheet? Why do we balance the two halves? Explain why the income statement can also be called a "profit-and-loss statement." (Select from the drop-down menus.) t h at the top and ends with In reviewing the income statement of a profitable company, one can see that it begins with at the bottom. Had there been...
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