what is an Income derived from the sale of goods or services in the normal course of business

Q: Under an accrual accounting system, an expense is recognized when O A. a good or service is used or…

A: Accrual accounting system: Accrual accounting system means recording income and expense when…

Q: How does accounting provide useful information about economic activities?

A: Whenever a company wants to make decisions that include money that decision comes under the economic…

Q: How did you calculate Net Income from business?

A: Net income from business = Business Revenue - Business expenses

Q: What is accounting and how does it relate to business?

A: Accounting: In finance, accounting is the process of documenting financial transactions, keeping and…

Q: True or false The income or loss reflected in the Income Statement is the result of the application…

A: The major accounting concepts are enumerated as below : a) Accrual  b) Consistency c) Going concern…

Q: * The report of company that shows overall profit on the sale of their goods or the ?provision of…

A: According to the given question, we need to find the correct option from the given available options…

Q: n which of the following cases will the business have Net profit ? a. Expenses are less than revenue…

A: Solution: "Expenses are less than revenue" in this case business will have net profit.

Q: - How do businesses follow their profits arising from the sale of tangible fixed assets in which…

A: The correct option is  A) Other Income To Be Accounted

Q: How much is the Total Service and Business Income collected

A: Total service income collected: Particulars Amount(P) Permit Fee 410000 Processing fee 8000…

Q: How does expense recognition impact the accounting equation

A: The accounting equation states that assets equal to sum of liabilities and equity.

Q: The principle of revenue recognition results in: a. recording revenue in the income statement b.…

A: In Accounting, there are certain principles and conventions which are followed to get fair view of…

Q: According to which concept the owners are considered to be different from the business [A] Business…

A: Accounting concepts are the rules or assumptions that must be followed whil preparation of financial…

Q: How does net income affect the operation of the business?

A: The bottom line of income statement is net income. It’s the outcome of sales and gains minus the…

Q: What does an Income statement tell about a business?

A: An entity requires details about its operations such as profits, financial position and cash flows…

Q: Which statement is true concerning the accrual basis of accounting? Revenues are recognized when…

A: There are two accounting methods which are currently used by the business. One is cash basis of…

Q: Distinguish between cash-basis accounting and accrual basis accounting. Why is accrual-basis…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: For money to accrue to a business, it needs to: a.Have been earned by the business b.Have been…

A: As per revenue recognition principles, if a company follows accrual method of accounting then…

Q: In accounting for a business, what does it mean to apply credits? Please explain.

A: Business transactions are happenings that have a financial impact on the financial statements of a…

Q: Profit is the difference between? a. Assets and liabilities b. Assets and equities c. The assets…

A: Assets, liabilities, equity, incomes and expenses are important terms that are being used in…

Q: Which sole proprietors compute the cost of goods sold? Sole proprietors who:  Make goods to sell,…

A: The cost of goods sold is estimated to know the actual cost of the goods which are sold by sole…

Q: The following statement suits best the definition of ASSETS: O a. The assets are expenses incurred…

A: Assets are considered as the resources of the business used to run the daily activity of the…

Q: What transactions are included in income from continuing operations? Briefly explain why it is…

A: Income from continuing operations includes the revenue, expense, gain, and loss transactions that…

Q: If a business earns a Net Income it means: * O Capital > Revenue Revenue Expenses

A: The question is based on the concept of Financial Accounting.

Q: 18) If any revenues and expenses which are not related to the sale of products or services…

A: Revenues: These are the inflows on sale of products or provision of service in the ordinary course…

Q: Which one of the following states that the life of a business can be divided into equal time…

A: Business is assumed to be going for an endless period of time. Therefore, the period is divided into…

Q: 1. The sources of money generated by the sale of products or services. A. Revenue B.Expenses C.Net…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: What is the business activity that's occurring for the customer? Describe the transaction in…

A: Companies sometimes issue cheques for the Payment of certain expenses and to the Payment of their…

Q: The value of goods or service sold by a business during a particular period of time is known as ...…

A: Following are the definitions: Income statement: It is the statement that shows the income and…

Q: What is the owner’s right to the assets (claims to the assets) of the business called? Group of…

A: Solution: As per basic accounting equation: Assets = Liabilities + Owner's equity Therefore Lenders…

Q: Match the transaction to the basis of accounting used by the business

A: Accounting: Accounting is the method of recording money transactions relating a business. The…

Q: Which of the following is an example of Current Asset of a Merchandise Business? a. Interest expense…

A: Current assets that are meant to be converted into cash or used within 12 months of period.

Q: How does the type of business structure affect accounting, reporting, taxes, and liability?

A: Types of business are sole proprietorship, Partnership, LLC, Cooperative, Corporations.

Q: The amount of assets consumed during the performance of business operations in a period while…

A: Assets can be defined as any resource which has its own intrinsic economic value, owned and…

Q: Identify or classify the different account titles as to whether the belong to Assets, Liabilities,…

A: Current assets are those assets which are expected to be sold as an outcome of the business…

Q: USING THE FOLLOWING CATEGORIES, DISCUSS THE DIFFERENCES THAT EXIST BETWEEN ACCOUNTING FOR THESE…

A: The process of defining, assessing, and reporting transactions to regulatory authorities, tax…

Q: Explain Accrual Accounting as it relates to revenue and expenses.

A: Accounting refers to recording, posting, analysing, summarising and communicating the financial…

Q: The amount business owes to others is known as: Revenue Expense Liabilities Assets

A: The different accounts in business balance sheet are described as assets, liabilities and owners'…

Q: The costs of doing business are classified as:a. assets.b. liabilities.c. revenues.d. expenses.

A: The correct option is option “d”. d. Expenses

Q: What do accountants mean by the term revenue?

A: Revenue is the sum that a corporation earns from selling products and/or supplying its clients and…

Q: If a business earns a Net Income it means: O Capital > Revenue O Revenue > Expenses Drawings >…

A: Net income As per formula Net income = Revenue-Expenses If expenses are less than revenue than net…

Q: Account which shows Gross Profit or Gross Loss of the business is called: Profit and Loss Account…

A: Trading Account is a part of financial statements of a company which shows the results of buying and…

Q: accounting records the impact of a business event when it occurs, regardless of whether the…

A: There are two concepts of accounting, which are used mostly. These are cash basis of accounting and…

Q: In which of the financial statements do Inventory and Cost of goods sold appear? A) on the balance…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…