Answered: Income from operations for a…

Income from operations for a merchandising company is sales less 1.operating expenses. 2.operating expenses and cost of goods sold. 3.cost of goods sold. 4.non-operating items and cost of goods sold.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Analyze the truth of this statement. The income statements for merchandising and manufacturing…

A: Cost of goods manufactured - The cost of goods manufactured is calculated as follows - Total…

Q: Ahmed Co. decides to establieh a petty cash fund with a beginning balane OA OB. Debit Cash BD 500…

A: Accounting is a medium of communication, like any language that we use. For example, two people can…

Q: What additional accounts would you expect to find in a manufacturing firm and how do they relate to…

A: 1) Purchase return account= It denotes the return of purchases made during the year. Relation to…

Q: 2. How would components of Revenues and Expenses differ between a merchandise company versus a…

A: a. Merchandise Company - This company does buy and sells of inventory from suppliers to customers.…

Q: What is the revenue account for a merchandising business called? Group of answer choices gross…

A: Solution: Merchandise business is a type of trading business that involves purchase and sales of…

Q: Which of the following is classified as general and administrative expenses? a. Salaries of admin…

A: Option d is correct.

Q: 12.Gross profit will result if: a. Sales revenue are greater than cost of goods sold. b. Operating…

A: Sales revenue is the amount received for the sale of goods (inventory) Cost of goods sold is cost…

Q: irections: Read the given sentences carefully. Select the best answer from the choices given below.…

Q: The single-step income statement for a merchandiser shows O other expenses and losses in a separate…

A: A single-step income statement is a format of income statement which does not classify revenues…

Q: Which of the following statements is correct in the context of the Income Statement prepared by a…

A: The Income Statement is prepared in order to show the result of operating a business for a period of…

Q: Difference in the income statement of a service and a merchandising business

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 1-Which of the following will be classified under inventory? a. Raw Materials b. All the above c.…

A: Gross profit margin = [(REVENUE - COGS) /REVENUE] *100

Q: I. The Cost of Goods Sold of a Merchandising company will include cost of Materials, Labor and…

A: Merchandising company is a company which is engaged in purchase and sale of readymade products. They…

Q: is computed as: ting income minus operating expenses. revenue minus cost of goods sold. materials…

A: The income statement is prepared to record the revenue and expenses for the current period. The net…

Q: The main difference between the income statements of a merchandising and a service type business is:…

A: SOLUTION EXPLANATION - A MERCHANDISING COMPANY ENGAGED IN PURCHASE AND RESALE OF TANGIBLE GOODS.…

Q: What does it mean when a company has a major expense? Like for example, "The major expense for…

A: For your understanding - There are two types of cost direct costs and indirect costs. Direct costs…

Q: Cherokee Incorporated is a merchandiser that provided the following information: Amount 14,000 $ 16…

A: The income statement is prepared by the management to identify the performance of the business. It…

Q: rue or false 1. Transportation in is the most paid by the company to deliver merchandise sold to a…

A: Income Statement means the statement which records all the business revenue and expenses and help to…

Q: How do the components of revenues and expenses differ between merchandising and service companies?…

A: Based on your given data, there is no given drop down but here is the general information about the…

Q: True or False Questions Statements 1. Unlike merchandising companies, income statements of service…

A: Solution:- 1)Unlike merchandising companies, income statements of service companies include cost of…

Q: Beginning inventory Merchandise Finished goods Cost of merchandise purchased Cost of goods…

A: Cost of Goods sold of a Manufacturing Company: Cost of goods sold in a manufacturing company means…

Q: A merchandising business purchases goods for resale. A merchandiser makes a profit by selling goods…

A: Under the FIFO method, the cost of goods sold contains the cost of the earliest purchases. Under the…

Q: Two categories of expenses for merchandising companies are

A: Option d

Q: 17. Cost of goods sold: A. Is another term for merchandise sales. B. Is the term used for the cost…

A: Cost of goods sold is the total cost of units sold during the period. It is the difference between…

Q: 1.) Explain one difference between manufacturing and merchandising business. 2.) Why is it that…

A: Solution:- 1) Explanation of one difference between manufacturing and merchandising business as…

Q: _______________might be chosen by a company because it is easier to read. The single-step income…

A: The single-step income statement combines all income and expenses into one straightforward…

Q: The main categories of cash flow activities on the statement of cash flows is/are Choose direct and…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: The cost of goods sold and total operating expenses of a merchandising company are both understated…

A: The income statement shows the net income or net loss that is calculated by deducting the expenses…

Q: Which of the following accounts is used in merchandising but not in service type of business?…

A: Service company deals with the intangible product whereas merchandise company buys tangible product…

Q: You have the following information for Blossom Company Blossoms uses the periodic method of…

A: Gross profit is the amount of money earned by the entity after deducting cost of goods sold from the…

Q: For a merchandiser, the term "inventory" refers to O A. raw materials that are used for production O…

A: A. Raw materials utilized in production: Usually handled by the supply chain team or by the…

Q: (True or False?) The income statement for a retailer shows both gross profit and profit.

A: Gross profit = Sales - Cost of goods sold Net Profit = Total Revenue - Total Expenses

Q: Gross profit will result if: O Sales revenues are greater than operating expenses. Operating…

A: Gross profit is the excess of the sales revenue over the cost of goods sold

Q: First step - you need to understand each individual components of the income statement (also called…

A: Income statement is the one which is prepared to depict the profitability of the company.

Q: Explain the difference between the income statements of a merchandiser & a manufacturer

A: 1. Income Statement - An income statement is a statement that shows the revenue earned and expenses…

Q: Which product costs appear on the balance sheet? a. goods that are partially completed at end of…

A: Product cost refers to the cost incurred in the production of goods and includes direct materials,…

Question

Income from operations for a merchandising company is sales less

1.operating expenses.

2.operating expenses and cost of goods sold.

3.cost of goods sold.

4.non-operating items and cost of goods sold.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How does the income statement and balance sheet of a merchandising company differs from a service company? What are the two inventory control systems? How one inventory control system is different from the other?
in a merchandising business gross profit is equal to the sales revenue minus (a) the sum of cost of goods sold and sales commissions (b) cost of goods sold (c) the sum of cost of goods sold and operating expenses (d) the sum of cost of goods sold, operating expenses and prepaid expenses
Selling expenses DOES NOT include: A. Advertising expense B. Making sales C. Accounting and Human Resources expense D. Delivering goods to customers
5. Cost of goods sold A only appears on merchandising companies' income statements b. only appears on manufacturing companies' income statements. C. appears on both manufacturing and merchandising companies income statements. d. is caloulated exactly the same for merchandising and manufacturing companies.
Gross profit is: The amount left over after cost of goods sold is subtracted from net sales. A.Net sales less operating expenses. B.Sales less sales discount. C.less sales discounts. D.Net sales less selling expenses
Which of the following statement is False for Multi-step income statement of a merchandise business? a. It helps in analyzing how well the company is performing b. It divides the expenses into Selling, General and administration expenses c. Users can see how much expense is incurred in selling the product and how much is in administering business d. It divides operating expense into Direct and Indirect expenses.
Which of the following statements are true regarding Costof Goods Sold?(i) Cost of Goods Sold represents the costs that a company incurred to purchase or produce inventory in thecurrent period.(ii) Cost of Goods Sold is an expense on the incomestatement.(iii) Cost of Goods Sold is affected by the inventorymethod selected by a company (FIFO, LIFO, etc.).a. (i) only c. (ii) and (iii)b. (ii) only d. All of the above.
Which of the following expressions is incorrect? Gross profit - operating expenses = net income Net income + operating expenses = gross profit ● Sales revenue - cost of goods sold - operating expenses = net income ● Operating expenses - cost of goods sold = gross profit
3. As product costs expire(expensed), they become part of a. selling expenses. b. inventory. C. cost of goods sold. d. sales revenue.
SLO-5.1. for a merchandising business is determined by subtracting the Cost of Goods Sold from the Sale Income account. OOperating Income ONet Income OGross Profit OMerchandise Available for Sale