Can a business earn a gross profit but incur a net loss? Explain.

Q: What is the impact on A Company financial statements if the company forgets to recognize that…

A: Unearned Revenue - Unearned Revenue is the revenue which is not earned by the company but amount…

Q: Expense is a decrease in owner's equity resulting from the operation of a business. Is it true or…

A: Given statement is: Expense is a decrease in owner's equity resulting from the operation of a…

Q: Can a business transaction cause one asset to increase with-out affecting any other asset,…

A:

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: why most of the companies used gross profit method?

A: Gross method is used to evaluate the inventory at year end.

Q: Owners equity is not cash; it is not a liability: and it generally is not equal to the current worth…

A: Owners’ equity generally referred to as shareholders equity, it is the net amount that the equity…

Q: The retained earnings account only reflects the profits retained in the business and gains and…

A: RE stands for Retained Earnings which refers to the net earnings or the company profits in…

Q: Explain the relative priority of the claims of owners and ofcreditors to the assets of a business.…

A: Claims:   Claims are the rights stockholders and creditors have over the assets of a company.

Q: Given the revenues and expenses of a business, net loss will result if: a. All the above situations…

A: Revenue means the amount earned by selling the goods or services. Expenses means the amount spent on…

Q: How much was the profit of the company

A: Profits of the company for Year 2020 = Accumulated losses of year 2020 - Accumulated losses of year…

Q: If a company failed to record an accrued income, what would be the effects?

A: Accrued income is that income which is being earned by the business for the particular period of…

Q: In a multiple-step income statement, interest expense usually is not classified as an operating…

A: A multi-step income statement is the type of income statement that presents revenues and expenses as…

Q: Which of the following are not expenses? * O Cost of goods sold O Wages earned but unpaid O…

A: Dividend distribution is a kind of deduction from the total retained earnings of the organization.…

Q: T F If a firm’s sales revenues exceed its expenses,the firm has earned a profit

A: The net income is the net profit of the company earned during the period. The net income includes…

Q: Earnings are extremely important to the creditors?

A: The creditors are the person to whom the company owes the money to be paid in future.

Q: According to the accrual accounting model, recognition of loss leads to decrease in a company’s net…

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

Q: hich statement is false? *   Revenues and expenses result from regular activities of the business.…

A: Operating activities:Operating activities refers to basic activities performed by the business…

Q: Profit maximization objective helps to: a. Increase the liquidity position of the business b. Reduce…

A: Two types of maximization Wealth maximization and profit maximization

Q: why the company logo is an asset? what does mean by retained earning (when it is not distributed as…

A: Logos are intangible assets of a company. Intangible assets provide value to a company because they…

Q: Discuss how Floating and Fixed debentures affects the profitability of a business?

A: In floating debentures the interest rate of such debentures change will the level of changes... Such…

Q: Explain the effect on the company's financial statements if a company switches from the historical…

A: A historical method is the accounting principle method in which the asset is recorded at the…

Q: Depletion is: A revenue for the business A liability for the business An asset for the business An…

A: Depletion is an accounting and tax concept used most often in the mining, timber, and petroleum…

Q: a. Determine whether Excelsior obtain profit or incurred a Loss. b. If you were the CEO of Excelsior…

A: Financial Statements are the statements which records the business activities and shows the overall…

Q: What does the current ratio inform you about a company?   A. The efficient use of assets.   B. The…

A: Current Ratio : The current ratio is the relation between the current assets and current liabilities…

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: What is the impact on profit for the year if income overstated? a. no effect b. profit will be…

A: Lets understand the basics. If there is error in recording the transaction then adjustment needs to…

Q: Explain how a company might use the accounting rules for impairment of long-lived assets to manage…

A: Long live assets: Those assets which are expected to provide the benefits of more than one year.…

Q: A bad debt is an expenses to the business and must be charged in the Statement of Profit or Loss and…

A: Bad debt: It can be defined as the receivable that will not be recovered or collected from the…

Q: In which of the following business organization the owners could only lose the money they invested…

A: Answer:   A corporation

Q: Question 6 Can a firm earn an economic loss and an accounting profit at the same time? E Forr

A: Lets understand the basics. Cost are divided into two parts which are, (1) Explicit cost (2)…

Q: If common stockholders are the owners of the company, why do they have the last claim on assets and…

A: common shareholders are the owners of the company because they are the actual owners, shareholder…

Q: When a business has made enough money to pay its costs and begin to make a profit

A: Cost is the amount that is incurred in the production process of the company. Whereas, profit…

Q: Compute the total profit or loss for the company.

A: Total profit for the company is the profit which has been added together from all the separate…

Q: Can a business earn a gross profit but incur a net loss?

A: Gross Profit is computed by deducting cost of goods sold from the sales revenue of the business. And…

Q: A company might restrict retained earnings, what does this indicate?

A: Retained earnings: Retained earnings are the portion of earnings kept by the business for the…

Q: What is the accounting treatment for discontinued operations? A :    It is reported at its gross…

A: In the today's world, it is possible that an entity of group is not earning profit due to several…

Q: Which of the following terms does not mean the same as the others? a. Bottom line b. Profit from…

A: Profit from operations is the profit derived from day to day operations of the entity. That is the…

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: Kathleen Battle says, “Retained earnings should be reported as an asset, since it is earnings which…

A: No, Kathleen Battle is not correct. The source of an asset includes some part of the retained…

Q: Where can I find the net profit after tax of a company? I am looking at a balance sheet and I do not…

A: Net profit after tax is to be found on income statement. It is the profit after deducting the tax…

Q: A company can increase its return on assets by doing which of the following: O a. Decreasing…

A: Return on assets = Net Income / Total assets Decreasing expenses while maintaining revenues:…

Q: Provide some example of items which would be adjusted directly against equity rather than being as…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Which of the following will cause owner's capital to decrease? Select one: a. Capital b. Profit c.…

A: SOLUTION- DRAWINGS-  IT IS THE AMOUNT TAKEN BY THE OWNER OF A BUSINESS FOR HIS PERSONAL USES . IT…