What is true? a.EBIT and Operating Income are often used interchangeably b.If a firm records depreciation expense on the income statement, then EBIT will be less than EBITDA (e.g.Earnings Before Interest, Taxes, Depreciation and Amortization) c.EBIT is an acronym for Earnings Before Interest and d.Taxes All of the above

An accrual of wages expense would have what effect on the balance sheet? Select one: O O O O A. Decrease liabilities and increase equity B. Increase assets and increase liabilities C. Increase liabilities and decrease equity D. Decrease assets and decrease liabilities E. None of the above

klp.2

2) Accounts receivable erroneously debited to note receivable  Effect on retained earnings -Since these are asset accounts there exists no effect on net income of the entity.   Can you explain this? Should it be retained earnings instead of net income?

The current ratio is useful in determining a company’s ability to pay obligations when they   become due. ____________.  True or false?

Indicate if the following transaction from Torte Baking Company increases or decreases assets, liabilities, equity, revenue, expense, and net income. The pattern of the + and - must adhere to the balance sheet equation. Show the impact of revenue and expense on both net income and equity.  If there is a + and - within one category (e.g., assets for transaction 2), then list the accounts that go up and down. Transaction (26) Recognize tax expense that will be paid later.  Assets       ["", "", ""]  Liabilities       ["", "", ""]  Equity        ["", "", ""]  Revenue        ["", "", ""]  Expense        ["", "", ""]  Net Income        ["", "", ""]

In a multiple-step income statement, the dollar amount for income from operations is always the same as net income. Please explain with full explanation a. True b. False

Which of the following is true regarding unearned revenue? Assets are increased when unearned revenue is earned. O Liabilities are increased when unearned revenue is received. O Net income is increased when unearned revenue is received. Revenue is increased when unearned revenue is received. Liabilities are increased when unearned revenue is earned.

The main purpose of the statement of profit or loss is to determine the amount of income and expenses the net profit or net loss the cost of sales the amount of accrued income and expenses O O O O

Other income is   a. added to operating income. b. deducted from operating income. c. added to gross profit. d. deducted from sales.