Which of the following represents the components of the income statement for a service business? Select one: a. Service Revenue – Operating Expenses = operating income b. Sales Revenue – Cost of Goods Manufactured = gross profit c. Sales Revenue – Cost of Goods Sold = gross profit d. Service Revenue – Cost of Goods Purchased = gross profit

Q: What is operating margin ? a) It is equal to ( gross profit on sales – operating expense ) / net…

A: Operating Margin is the profitability ratio which shows the percentage of profit earned by the…

Q: Based on the above information, what are the number of units available for sale? and how much is the…

A: Please see Step 2 for the required information.

Q: Under the gross profit method, if the gross profit rate is based on cost, the cost of sales is…

A: The gross profit method is the one wherein the amount of inventory is measured using the gross…

Q: Give the solution in each letter: a. How much is the total net revenue? b. How much is the total…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: What is Cost of Goods Sold (COGS) and how is it calculated? What is Gross Profit and how is it…

A: The income statement is prepared to record the revenues and expenses of the current period.

Q: Give an example of situation to show how a business adheres to each of the following accounting…

A: HISTORICAL COST - as per the historical cost concept, every company must record its assets and…

Q: Product costs are ordinarily found in the traditional Income Statement's Operating Expenses whereas…

A: Product costs are those costs which are incurred on specific products like material cost, labour…

Q: The following is a statement about a multiple-step income statement, EXCEPT A. There is a section…

A: Multiple step income statement as the name suggests shows the calculation of income in various steps…

Q: dentify the true statement from the ones given below: a. Financial accounting shows the cost and…

A: Management accounting means an field of accounting where accounting information is used in such a…

Q: The formula "(Sales Revenue – Cost of Goods Sold) + Sales Revenue" produces:

A: The income statement represents the net profit or net loss of the company that is calculated by…

Q: the income statement, interest revenue is found in     operating revenues and expenses.…

A: Interest revenue  earned  is not the main source of income  for a business

Q: Which of the following statements is false? O a. Product costs are inventoriable costs O b. Product…

A: Product costs - these can be defined as costs incurred by the business while producing a good or…

Q: In a sheet of paper, write TRUE if the statement is correct and FALSE if the statement is incorrect.…

A: I am answering the first 3 sub-parts of the question as per bartleby guidelines. Please re-submit…

Q: P/V Ratio is an indicator of [A] the rate at which goods are sold [B] the volume of sales [C] the…

A: P/V ratio also known as profit volume ratio is a ratio that determines the amount of profit attained…

Q: The percentage of profit obtained from the sale of a certain product within a period is called …….…

A: Company makes sales of its products for the purpose of profit. For example, goods costing $10,000…

Q: Define how costs of goods and other costs such as taxes contribute to the performance besides sales?

A: Performance of the business is usually measured by the ability of the company to generate 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 is Gross Margin? a)     (Net Sales  - Cost of Sales – Operating Expenses) / Net Sales b)…

A: Solution:- Introduction;- Gross margin is the difference between Net sales and cost of goods sold.…

Q: a. the cost of goods on hand at the beginning and the cost of goods purchased during the period b.…

A: >Cost of Goods available for sale is includes:--Cost of goods manufactured as adjusted by…

Q: Revenue from sales of the by-product can be listed in the income statement as: a. additional cost…

A: Revenue from sale of by product is shown in the income statement as an additional sales revenue…

Q: Prepare an income statement and Balance sheet with your imaginary figures on historical cost basis…

A: 1) Imaginary Trail Balance  Trail Balance of XYZ Ltd as on 31 Dec 2020 Particulars  Amount…

Q: Required: Identify four items/accounts with which the company can manipulate and affect the earning…

A: Companies that manipulate accounts often seeking to increase their net income in order to create the…

Q: t is the amount earned by the business on the process of selling goods or performing services. a.…

A: Revenue means the amount earned by selling the goods or services. Unearned revenue means the amount…

Q: Gross profit minus total operating expenses is called ____________. Group of answer choices income…

A: Gross Profit: After deducting all of the expenditures that are associated with the production and…

Q: When is revenue recognized by service provider? By a merchandiser? By a manufacturer? Differentiate…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Write TRUE if the statement is correct and if false, write the word or phrase that makes the…

A: Preparation of income statement helps the business entity in determining how much amount of gross…

Q: The combination of Selling Expenses and Administrative Expenses is referred to as Select one: a.…

A: Cost sheet is a method of allocating total cost into different categories such as direct material…

Q: he two companies: Sales to Y Sales to others Cost of goods sol Cost of goods sol

A: Intercompany sales mean that sales are made by one company of the group of companies to the other…

Q: Which of the following is operating expenses ? a) Administrative expenses ratio b) Selling and…

A: Operating expenses are the expenses that indicate the day-to-day operational expenses of the…

Q: Consider the following: Code: A = Gross profit to net sales ratio   B = Gross profit to cost of…

A:

Q: Operating expenses are comprised of the following: General and Administrative Expense, Cost of…

A: Solution Concept Cost of goods sold includes the direct material and direct labor and shall be…

Q: Profit or Loss is computed by subtracting cost / expenses from – a. income/revenue c. sales b.…

A: Answer 1) Profit or Loss is computed by subtracting cost / expenses from: income/revenue: This…

Q: what is the estimated cost of goods sold & the estimated gross margin

A: The answer for the theory question on estimated cost of goods sold and estimated gross profit margin…

Q: A product cost is: A.Shown on the income statement with operating expenses  B. Expensed in the…

A: Costs incurred by a business can be categorized by two types i.e., product costs and period costs.…

Q: The COGS is estimated by deducting the gross profit from sales revenue. Distinguish between gross…

A: Gross profit is calculated by deducting the cost of goods sold from the sales. The percentage of…

Q: Cost of Goods Sold is:   Multiple Choice   A revenue account.   An asset account.   A permanent…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: Multiple Choice) A multi-step income statement ________. A. separates cost of goods sold from…

A: In multi step income statement the operating results are separately shown.It doesn't consider…

Q: A multi- step income statement ___________. A. Seperates cost of goods sold from operating…

A: Mutli step income statement means an income statement where first gross profit is calculated by…

Q: total net revenue

A: Statement of comprehensive income is a part of financial statements which shows the net income from…

Q: Compute the following: a) Net sales revenue b) Cost of goods sold

A: Gross profit is the amount earned from selling the company's products or rendering services. It is…

Q: Period costs include: a. current liabilities on the balance sheet b. operating costs that are shown…

A: Period costs are costs other than Product Costs incurred by an entity. These Costs generally include…

Q: Calculate gross profit percentage and return on sales ratio

A: The formula to calculate the given ratios are: