Homework Answers
True,
The above statement is correct,
The traditiònal format of income statement is like contribution margin statement, in this statement selling and administrative expenses are reduced from contribution.
This statement shows every item of income statement in some predetermined head.
External financial statement are those F/S 's which are used to show your profits figure to potential investor or bankers.This document is prepared as most lucrative to enhance the interest of user in company showing it.here this statement is also used to increase understandability of user of financial statement.
Since all of this can be possible by showing figures in a specified manner. Hence this format is widely used to for external financial statement.
Please comment for any explanation.
Thanks
Add Answer to:
1 covers 1,2,7 Saved TB TF Qu. 1-61 Traditional format income ... 3 Traditional format income...
Traditional format income statements are widely used for preparing external financial statements. True False
Traditional format income statements are widely used for preparing external financial statements. True False
TB TF Qu. 3-88 (Static) In order to perform cost-volume-profit... In order to perform cost-volume-profit analysis,...
TB TF Qu. 3-88 (Static) In order to perform cost-volume-profit... In order to perform cost-volume-profit analysis, a company must be able to identify its variable and fixed costs. True or False True False
Take Survey 3-question survey Ch 4-7) TB TF Qu. 04-130 Selling costs are recognized as expenses......
Take Survey 3-question survey Ch 4-7) TB TF Qu. 04-130 Selling costs are recognized as expenses... Selling costs are recognized as expenses in the period when goods are sold. True or False 54:11 False True
TB TF Qu. 4-137 (Static) Indicate whether each of the following... Indicate whether each of the...
TB TF Qu. 4-137 (Static) Indicate whether each of the following... Indicate whether each of the following statements is true or false. Companies group several individual overhead costs into cost pools to simplify the allocation process. (Click to select) A cost pool should include costs that will all be allocated to a single cost object. (Click to select) When a cost pool is used, costs are allocated individually to the cost object. (Click to select) Using cost pools to group...
The contribution margin format income statement is not widely used for external financial reporting, but is...
The contribution margin format income statement is not widely used for external financial reporting, but is allowed by GAAP. true or false
TB MC Qu. 13-61 Autry Corporation's balance sheet... Autry Corporation's balance sheet and income statement appear...
TB MC Qu. 13-61 Autry Corporation's balance sheet... Autry Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Beginning Balance Balance $ 29 62 41 132 482 217 265 $397 $ 30 61 39 130 450 250 200 $330 Assets: Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and stockholders' equity: Current liabilities: Accounts payable Accrued liabilities Income...
3 Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6) Todrick Company is a merchandiser that...
3 Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6) Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory rixed selling expense rixed adninistrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income 300,000 s 20,000 200,000 7,000 its Print 12,000 15.000 60,000 s 18,000 Required: 1. Prepare a contribution format income statement 2. Prepare a traditional format income statement 3. Calculate the...
Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6) 3 Todrick Company is a merchandiser that...
Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6) 3 Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: 300,000 20,000 s 200,000 ,000 Sales Beginning merchandise inventory Ending nerehandise inventory Fixed selling expense rixed administrative expense Variable selling expense Variable administrative expense Contribation margin Net operating income 7 03:3707 12,000 15,000 Print 60,000 18,000 1. Prepare a contribution format income statement 2. Prepare a traditional format income statement 3. Calculate the selling price...
Problem 1-25 Traditional and Contribution Format Income Statements (LO1-6) Milden Company is a merchandiser that plans...
Problem 1-25 Traditional and Contribution Format Income Statements (LO1-6) Milden Company is a merchandiser that plans to sell 39,000 units during the next quarter at a selling price of $65 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $32 per unit sold $188,000 per quarter 5% of sales $42,000 per quarter + $4.00 per unit...
Exercise 1-6 Traditional and Contribution Format Income Statements [L01-6) Cherokee Inc. is a merchandiser that provided...
Exercise 1-6 Traditional and Contribution Format Income Statements [L01-6) Cherokee Inc. is a merchandiser that provided the following information: Amoun 12,000 Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases $16 s 18,000 s13,000 s 10,000 s 24,000 86,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement Complete this...
Traditional format income statements are widely used for preparing external financial statements. True False
TB TF Qu. 3-88 (Static) In order to perform cost-volume-profit... In order to perform cost-volume-profit analysis, a company must be able to identify its variable and fixed costs. True or False True False
Take Survey 3-question survey Ch 4-7) TB TF Qu. 04-130 Selling costs are recognized as expenses... Selling costs are recognized as expenses in the period when goods are sold. True or False 54:11 False True
TB TF Qu. 4-137 (Static) Indicate whether each of the following... Indicate whether each of the following statements is true or false. Companies group several individual overhead costs into cost pools to simplify the allocation process. (Click to select) A cost pool should include costs that will all be allocated to a single cost object. (Click to select) When a cost pool is used, costs are allocated individually to the cost object. (Click to select) Using cost pools to group...
TB MC Qu. 13-61 Autry Corporation's balance sheet... Autry Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Beginning Balance Balance $ 29 62 41 132 482 217 265 $397 $ 30 61 39 130 450 250 200 $330 Assets: Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and stockholders' equity: Current liabilities: Accounts payable Accrued liabilities Income...
3 Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6) Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory rixed selling expense rixed adninistrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income 300,000 s 20,000 200,000 7,000 its Print 12,000 15.000 60,000 s 18,000 Required: 1. Prepare a contribution format income statement 2. Prepare a traditional format income statement 3. Calculate the...
Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6) 3 Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: 300,000 20,000 s 200,000 ,000 Sales Beginning merchandise inventory Ending nerehandise inventory Fixed selling expense rixed administrative expense Variable selling expense Variable administrative expense Contribation margin Net operating income 7 03:3707 12,000 15,000 Print 60,000 18,000 1. Prepare a contribution format income statement 2. Prepare a traditional format income statement 3. Calculate the selling price...
Problem 1-25 Traditional and Contribution Format Income Statements (LO1-6) Milden Company is a merchandiser that plans to sell 39,000 units during the next quarter at a selling price of $65 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $32 per unit sold $188,000 per quarter 5% of sales $42,000 per quarter + $4.00 per unit...
Exercise 1-6 Traditional and Contribution Format Income Statements [L01-6) Cherokee Inc. is a merchandiser that provided the following information: Amoun 12,000 Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases $16 s 18,000 s13,000 s 10,000 s 24,000 86,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement Complete this...
Most questions answered within 3 hours.
-
A bored TV technician decides to plug a high voltage
power supply to a cathode-ray tube...
asked 12 minutes ago -
Using std. electrode potentials listed, calculate the
equilibrium constant at 25 ⁰C for the following reaction:...
asked 1 hour ago -
A researcher in the field of educational psychology obtains a
random sample of 49 fourth grade...
asked 1 hour ago -
A
liter of liquid soap concentrate sells for 7.2 Yuan in China.
Determine the total volume...
asked 1 hour ago -
A
person with polycythemia vera ( excess production of red blood
cells) receives radioactive phosphorus-32. Why...
asked 1 hour ago -
Regression Analysis
Y = Price in $’s for Tracfone service plan
X1 = No. of minutes...
asked 1 hour ago -
Various computers and operating systems in the past have used
separate instruction and data spaces, allowing...
asked 1 hour ago -
You have a series of simple polarisers that you can orient as
you choose in succession...
asked 1 hour ago -
This is a c++ class utilizing class templates
and linked lists. I need to implement the...
asked 1 hour ago -
How is the Irish banking system different from the rest of
European banks and how does...
asked 1 hour ago -
Calculate ΔGo for the reaction of ammonia with
oxygen:
4NH3 (g) + 3 O2 (g)...
asked 1 hour ago -
How do I go from one concentration of cells to another?
In this case, I have...
asked 1 hour ago