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

Q: If E-P28,091.16 and N = P11,213.00, what is the value of D? Note: E= Total Earnings D- Deduction N=…

A: Formula used : Net pay = Total Earnings - Deductions

Q: Income Statement 1) Why are items such as sales and labour/Gross Profit on the CR side and items…

A: 1.Revenues are recorded in the credit side of the income statement. Thus, sales and labour/gross…

Q: Which of the following shows how a payment made to settle an accrued expense, such as salaries…

A: Payment of accrued expense reduce cash balance (asset). Accrued expense is a liability that needs to…

Q: Economic Entity Assumption   Monetary Unit Assumption   Historical Cost Principle             Going…

A: Principles of Accounting : These are the rules of accounting which are known as GAAP's (Generally…

Q: Q3: Summarize chapter 4 (The effect of profit or loss on capital and the double entry system for…

A: Capital is the monetary resources of the business which is used to generate income or wealth.

Q: Name the specific third party that the company owes for each of the following liabilities. A. Sales…

A: here's a more detailed explanation for each liability: A. Sales tax payable: This liability…

Q: 1. What does the beginning balance of retained earning indicate? And what does the following that is…

A: Retained earnings are the accumulated earnings of the business that is fully attributable to the…

Q: The income from an equity method investee is reported on one line of the investor compa income…

A: Investment income in equity method is return on invested amount. It is treated as reduction in the…

Q: Differentiate between book value and market value. Explain why GAAPallows smoothing earnings…

A: The net value of a company's assets, as represented on its balance sheet, is roughly equal to the…

Q: Accrued revenues represent revenues ?received after they are earned False

A: Solution: Accrued revenues are revenues that are earned but yet not received. These are shown as…

Q: Profit is A) assets minus liabilities B) the excess of revenues over expenses C) the excess of…

A: Accounting equation is the equation that shows relationship between assets, liabilities and owner's…

Q: Which is not a liability account?

A: Liability is either cash or assets payable to third party based on certain obligation of company.…

Q: 1. Definitions (S9.1-S9.3) Define the following terms: a. Cost of debt. b. Cost of equity. c.…

A: The company raises money through debt and equity and these are sources for long term finance for…

Q: Which of the following is true about expenses on the income statement?   Depreciation expense is…

A: Income statement also known as Profit and Loss statement is a financial statement that provides an…

Q: Discuss the relationship between profit and ethics.

A: Ethics:   It is a set of moral principle followed by an individual or a company. It is not same for…

Q: Payment of a divdend will :  A. Decrease net income  B. Increase net income  C. Decrease retained…

A: when companies earn income they share income with shareholders by way of dividend.

Q: Which of the following equations expresses the definition of “income”?   Choices; Income = Revenues…

A: Revenues - It is the amount of money received through sale of goods and services . Gains - It is the…

Q: Accounting type Question: Income received in advance is a A. An asset B. An income C. A liability D.…

A: Income received in advance is accounted for as a liability because the amount received cannot be…

Q: The assumption indicates that a company will not be sold or liquidated in the near future. а.…

A: The going concern assumption indicates that a company will not be sold or liquidated in the near…

Q: Net income is gross profit less other income.O financing expenses.O operating expenses.O other…

A: Gross profit is computed by subtracting cost of goods sold from revenue. Gross Profit = Revenue  -…

Q: Earnings before interest and taxes are positive above the operating breakeven point, and a loss…

A: At the Operating breakeven point, the firm has nil operating profit or Earnings before interest and…

Q: Which one of the following is a nominal (temporary) account?   Select one: Supplies Dividends…

A: Under traditional accounting, the accounts are categorized as nominal accounts and real accounts.…

Q: Net Income is calculated as follows: NI = NII – Burden - PL + SG-T Where, bank burden (non-interest…

A: Formula: NI = NII - Burden - PL - + SG - T NI stands for Net Income.

Q: Which of the following best represents operating income? Seleccione una: Oa. Income after financing…

A: Income after financing activities (option a): This option describes the net income remaining after…

Q: Choose one:A) It is possible for the Income Statement to balanceB) The Income Statement always…

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

Q: None

A: Step 1: Explanation for Correct option Net Asset Value is a financial metric used primarily with…

Q: Which of the following statements regarding equity is not true? It is defined independently of…

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

Q: Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does…

A: Net income is generated after analyzing revenues and expenses of the organization.

Q: Eypically would best appear. If an item Account Title Classification 1. Long-term investment in…

A: 1.       Long term investment in stock: It is a long term investment as the name suggests.2.…

Q: Which of the following accounts would not be involved in preparing the income statement? Group of…

A: Profit and loss : Amount earned or lost on the sale of one or more items is referred to as the…

Q: Net Income may also be called O earnings or net profit O operating margin O EBIT O retained earnings

A: Net Income is the amount a company has left after paying off all its expenses. It is calculated by…

Q: Please tell if the following are Assets, liabilities, or equity 1) accounts receivable 2) Smith,…

A: Balance sheet is a financial statement that depicts the value of assets, liabilities and capital as…

Q: For Target Corporation, which of the following is an example of Other Expenses and Losses? O…

A: Not needed

Q: Fill in the blank with these terms : long term, expense, balance sheet, Stockholder's equity,…

A: Solution: 1. Revenues are monies an organization received in exchange for goods and Service it…

Q: The income statement may include all of the following items except 1. Interest expense 2.…

A: Income statement comprises of Total revenue  and all expenses that are related to the business.

Q: Real assets are assets used to produce goods and services always the same as financial assets always…

A: Real assets are tangible / physical assets used in production of goods or services. These assets are…

Q: Select contra accounts (e.g., contra-assets, contra-liabilities, contra-equity accounts). Select all…

A: Contra account refer to the accounts in the balance sheet that reduces the balance of respective…

Q: When a company pays its rent in advance, its balance sheet will refl ect a reduction in: C . one…

A: When a company pays its rent in advance, its balance sheet will reflect a reduction in one category…

Q: Which of the following is NOT true of revenue expenditure? It is an expenditure that keeps an asset…

A: Revenue expenditure is considered as a short-term expense while capital expenditure is long-term i.e…

Q: EBIT is Select one: O a. equity before tax and interest O b. gross profit O c. net profit O d. EBT…

A: EBIT means earnings before interest and taxes. This is an important element of income statement of…

Q: cost of holding inventory *

A: 1st answer :- Cost of Debt 2nd answer :- Carrying cost