Using Financial Accounting Information
10th Edition
ISBN: 9781337276337
Author: Porter, Gary A.
Publisher: Cengage Learning,
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Chapter 2, Problem 2.11.1AAMCP
To determine
Concept Introduction:Income statement is prepared using two methods of presentation; single step income statement and multiple-step income statement. The multiple step income statement classifies the expenses into selling and general and administrative expenses.
To identify: The type of income statement.
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Match each defınition with the term that best describes it.
An income measure that includes gains and
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Sales revenue (Sales)
Expenses incurred in the process of earning sales revenue.
losses that are excluded from the
determination of net income.
An account that is offset against a revenue
Contra revenue account
account on the income statement.
Cost of goods sold
Periodic inventory system
FOB destination
The total cost of merchandise sold during the
Comprehensive income
FOB shipping point
Perpetual inventory system
period.
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company does not keep detailed inventory
records throughout the accounting period
but determines the cost of goods sold only at
the end of an accounting period.
An inventory system under which the
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company keeps detailed records of the cost
of each inventory purchase and sale, and the
records continuously show the inventory that
should be on hand.
The primary source of revenue in a
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Based on the partial trial balance below, prepare the Statement of Income (SCI) with supporting notes to the financial statements
Make sure that the Statement of Income has the following:
Net Purchases- X,XXX,XXX.
Total Gross Income- X,XXX,XXX.
Total Marketing and Selling Expenses- XXX,XXX.
Total General and Administrative Expenses- XXX,XXX.
Total Manufaturing Cost - X,XXX,XXX.
Total Cost of Goods Sold- X,XXX,XXX.
Total Cost of Goods Manufactured- X,XXX,XXX.
Total Factory Overhead- X,XXX,XXX
Net Income After Tax- XXX,XXX.
MULTIPLE CHOICES
The main categories of cash flow activities on the statement of cash flows is/are
Choose
direct and indirect
a merchandising company shows each
current and long-term
non-cash investing and financing
operating, investing, and financing
Chapter 2 Solutions
Using Financial Accounting Information
Ch. 2 - Prob. 2.1ECh. 2 - Prob. 2.2.1ECh. 2 - Prob. 2.2.2ECh. 2 - Classification of Financial Statement Items Regal...Ch. 2 - Prob. 2.4.1ECh. 2 - Prob. 2.4.2ECh. 2 - Prob. 2.4.3ECh. 2 - Prob. 2.5ECh. 2 - Prob. 2.6ECh. 2 - Prob. 2.7E
Ch. 2 - Prob. 2.8ECh. 2 - Statement of Retained Earnings Landon Corporation...Ch. 2 - Prob. 2.10ECh. 2 - Prob. 2.11ECh. 2 - Prob. 2.12MCECh. 2 - Prob. 2.13MCECh. 2 - Prob. 2.14MCECh. 2 - Prob. 2.1.1PCh. 2 - Prob. 2.1.2PCh. 2 - Prob. 2.2PCh. 2 - Prob. 2.3.1PCh. 2 - Prob. 2.3.2PCh. 2 - Prob. 2.3.3PCh. 2 - Prob. 2.4.1PCh. 2 - Prob. 2.4.2PCh. 2 - Prob. 2.5.1PCh. 2 - Prob. 2.5.2PCh. 2 - Prob. 2.5.3PCh. 2 - Prob. 2.6.1PCh. 2 - Prob. 2.6.2PCh. 2 - Prob. 2.7.1PCh. 2 - Prob. 2.7.2PCh. 2 - Prob. 2.7.3PCh. 2 - Multiple-Step Income Statement and Profit Margin...Ch. 2 - Prob. 2.8PCh. 2 - Prob. 2.9PCh. 2 - Prob. 2.10MCPCh. 2 - Prob. 2.11MCPCh. 2 - Prob. 2.12MCPCh. 2 - Prob. 2.1.1AAPCh. 2 - Prob. 2.1.2AAPCh. 2 - Prob. 2.2AAPCh. 2 - Prob. 2.3.1AAPCh. 2 - Prob. 2.3.2AAPCh. 2 - Prob. 2.3.3AAPCh. 2 - Prob. 2.4.1AAPCh. 2 - Prob. 2.4.2AAPCh. 2 - Prob. 2.5.1AAPCh. 2 - Prob. 2.5.2AAPCh. 2 - Prob. 2.5.3AAPCh. 2 - Prob. 2.6.1AAPCh. 2 - Prob. 2.6.2AAPCh. 2 - Prob. 2.7.1AAPCh. 2 - Prob. 2.7.2AAPCh. 2 - Prob. 2.7.3AAPCh. 2 - Multiple-Step Income Statement and Profit Margin...Ch. 2 - Prob. 2.8.1AAPCh. 2 - Prob. 2.8.2AAPCh. 2 - Prob. 2.9AAPCh. 2 - Prob. 2.10AAMCPCh. 2 - Prob. 2.11.1AAMCPCh. 2 - Prob. 2.11.2AAMCPCh. 2 - Prob. 2.12AAMCP
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- MULTIPLE-STEP INCOME STATEMENT Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Aeitos Plumbing Supplies for the year ended December 31, 20--.arrow_forwardWhere are selling and administrative expenses found on the multiple-step income statement? Da. after net income and before expenses b. before gross profit c. after sales and before gross profit Od. after gross profitarrow_forward4) Describe the multiple-step income statement for a retailer?arrow_forward
- COST OF GOODS SOLD SECTION, MULTIPLE-STEP INCOME STATEMENT Based on the information that follows, prepare the cost of goods sold section of a multiple-step income statement.arrow_forwardThe following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?arrow_forwardComparability and Consistency in Income Statements The following income statements were provided by Chisholm Company, a wholesale food distributor: Required Identify each income statement as either single- or multiple-step format. Restate each item in the income statements as a percentage of sales. Why did net income remain unchanged when sales increased in 2016?arrow_forward
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- Multiple Select Question Select all that apply Identify the statements below which are correct regarding a merchandiser's multi-step income statement. Accounts receivable is included on the statement. Cost of goods sold is subtracted from net sales in order to determine gross profit. Merchandise inventory is reported on the statement. Total assets is the lastne on the statement. Expenses are subtracted from gross profit in order to calculate net income.arrow_forwardplease please answer correctly with all working and steps so that I can understand clearly thanks Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.arrow_forwardWhich of the following best describes a single-step income statement? a.Operating expenses are divided into the subcategories of selling expenses and general expenses. b.Gross sales is shown first, less sales returns and allowances and sales discounts. c.Operating expenses are listed and subtracted from the gross profit to compute income from operations. d.All revenue items and their total are listed first, followed by all expense items and their total.arrow_forward
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How To Analyze an Income Statement; Author: Daniel Pronk;https://www.youtube.com/watch?v=uVHGgSXtQmE;License: Standard Youtube License