How do excessive inventories affect the following financial statements; Income Statement, Balance Sheet, and Cash Flow Statement. Is it positive or negative, be specific.

Q: "The projected income statement method consists of taking the estimated income statement for the…

A: The income statement is the summary of income earned and expenses made in a certain period.…

Q: Why are fixed assets reported on the balance sheet at a price that may not be accurate

A: Fixed assets are those that are not subject to change. Fixed assets are retained for an extended…

Q: and

A: Answer: Income statement-Negative effect: Inventories are not recorded in the income statement.…

Q: Which of the following statements is not correct regarding combined statement of financial position…

A: The combined statement of financial position errors and income statement errors effects both the…

Q: Which of the following would not overstate current-period net income?a. Capitalizing an expenditure…

A: Net income: Net income refers to the income earned by the company after providing for all the…

Q: which of the following would be considered in the calculation of gross profit?  Sales and returns…

A: Gross Profit is the operating profit calculated by deducting the cost of goods sold from the revenue…

Q: Which of the following methods may not be appropiate for estimating bad debt expense? a. Percentage…

A: The bad debt expense is created for the debtors which company finds that would not make the full…

Q: What are the impacts on your financial statement if you account the transactions not accurately

A: Financial Reporting refers to the recording of the financial transactions of a company for a desired…

Q: Which one of the following is not a type of measure used in the Balance scorecard?

A: The business organizations has employees in their various departments and on different level…

Q: Does Derecognition only apply to the balance sheet? If so, Why? Why are other statements not used?…

A: Derecognition is the process of removing an asset or liability from the financial statements of a…

Q: Which of the following is not typically found on an Income Statement? A. Revenue B. Expenses C.…

A: Liabilities are typically reported on a company's balance sheet, not on its income statement. The…

Q: Transactions that affect inventories on hand have an effect on both the balance sheet and the income…

A: Inventory on hand is Closing Inventory is a Current Assets and it is shown in Income Statement and…

Q: A debit balance in the Income Summary account represents a net loss. O True O False

A: The income summary account is a nominal account used to close the temporary accounts of the business…

Q: deficit

A: If the total asset is smaller than total liabilities and equity on the balance sheet it means a…

Q: In methods of estimating doubtful accounts, how does income statements approaches differ from…

A: Income Statement Approach: under this approach, the estimated amount of bad debts expense is…

Q: What items are not presented on the income statement?

A: Income statement:The financial statement which reports revenues and expenses from business…

Q: What is the point of included non-cash entries such as accruals and depreciation in a financial…

A: Lets understand the basics. Adjusting entry is required to make to record correct amount of revenue…

Q: How to compute the amount of net income or net loss

A: Net Income or net loss is computed by preparing the income statement.The first step in computing the…

Q: Why Revenue is recognized when performance obligations are satisfied, not necessarily when cash is…

A: Revenue recognition principle: Revenue recognition principle states that every business organization…

Q: How do I know what should or shouldn't be on an income statement from a list?

A: Income statement or statement of profit or loss is prepared to determine the net profit or loss…

Q: True or false Credits Increases in liabilities and revenue. Decrease in assets and expenses?

A: Assets - Assets are the resources owned by the company from the capital invested. Liabilities -…

Q: Must bad debt expense be reported on its own line on the income statement? If not, how should it be…

A: Bad debts expense: The amounts of loss incurred from extending credit in the customer’s account are…

Q: Identify at least two situations in which important changesin value are not reported in the income…

A: Definition:

Q: In accounting for bad debts, how do the income statement approach and the balance sheet approach…

A: A company made credit sales to its customers. The mount which is not received from customers is…

Q: A decrease in Accounts Payable is a ( SOURCE or  USE) of funds?

A: The cash flows statement is used to record cash inflows or cash outflow from the company in order to…

Q: Accruals occur when the cash flow precedes either revenue or expense recognition. True/False?

A: Under accrual basis of accounting revenue and expense are recorded in the financial statement when…

Q: What are the disadvantages of only accounting for cash income and expenses in basic cost and return…

A: Cost and return analysis is also regarded as cost-benefit analysis which is carried out to make…

Q: what is assets? what is non-current assets? what is current assets? what is equity? what is…

A: Since you have asked multiple questions, we will solve the first seveb questions for you. If you…