a-multi-step-income-statement-________-a-separates-cost-of-goods-sold-from-operating-expenses-b-cons

Question

A multi-step income statement ________.
A. separates cost of goods sold from operating expenses
B. considers interest revenue an operating activity
C. is another name for a simple income statement
D. combines cost of goods sold and operating expenses

Puneet Prajapati · Accepted Answer

bookies will be will understand the meaning of income. State. Okay, forward by their maybe throw a specimen for sure that how? Debating? So it is a one off the find engine state moves, which is prepared by an entity Who says De Prophet David off operations. Okay, so from the definition we&#x27;ve been in this day, they this statement is bear who says the but offering the ability situation off the complete operations. Let&#x27;s suppose there is a business who is in building off Funny jer. So the business entity will prepare income Statement says that how there is performing you held entity has been fall for last five years to like vice. Okay, so now we draw good specimen for income statement. Okay. However, this is Justin indicated former You will see a lot more detail for that. Then face later. The pumping problems. So, first of all, we have seats for which he actually established double business. OK, and then we have other income, like impressing Come. Okay, so that would be of a group moving okay. Afterwards we have ball stuff from soy. Okay, be referred as cogs. Shark phone. Okay, then we will have operating expenses order. By that, he will have plenty of expenses playing expensive that will be categorized in that defined hex. However, the income statement which separates it separates our stuff works. Sword from operating expenses will be known as Marty. Step in ghosted. Okay. Why? Why the name suggest like that? Because it will enable angry to identify that. What? You can see how much off the crosstalk were sold will be and what I off operating expenses there are in the business entity. Okay, so they will be able to identify that how much they are investing in Boston Call stop books that have been sold through the customers And how much expenses are how much investment is being done in Just open it to me. Business. Okay, so in operating expenses, you can invest in lost up sore means. That&#x27;s a lightem. Okay, let&#x27;s suppose you have sold. Finally check to your customers. No. In order to process for nature, you have to buy gloves. Okay, Clogs. So that will be the pasta puts on our However, in operating expenses, they will be playing their expenses like telephone. Okay, Electricity a lot. The list is not exhaustive. So that statement will be known as modernity. Step income statement. Okay, so now that matches with choice be that separate its cogs foam expenses that got operating in nature. Okay, so you can write down what I&#x27;ve written so far. However, choices, that&#x27;s all. Whatever solution. Thank you.

Puneet Prajapati · Answer

Okay, so we robbing specimen off income statement. Okay. Followed by that, you understand that how many types of cancer we can have and what is the purpose off all of these separates? Okay, so there are actually two columns and income statement. Okay, Most of this particulars. 2nd 1 is a mode. Okay, You know what happens? Income statements Prepare to see that. How much profit or loss sanctity has indicated? Okay, enough. Like inaccessible. There is a business off on each other. And then could he wants to know how much profit off loss lying to the agent within the current financial year and even preparing cancer. Okay, so I haven&#x27;t also right fictitious here, So you can you can understand that. What type of suit? In simple in concept, we have all night. I&#x27;m segregated or aggregated at Consolidated 11. Like it actually aggregated all the elements. Okay, aggregate, it&#x27;s on. Lee, have a news. We can see all the expenses on two in one. Okay, let&#x27;s suppose the evil right here. After scenes we have I didn&#x27;t go. Okay, so it so simple income shaping this world, I don&#x27;t will be there for this. Okay. Who showed that and all the revenues or all the expenses have been combined, Mama. Bit more big, less complex statement. Okay, then I need this and then all the expenses, like operating expenses and possible So will be combining two soon. We&#x27;ll expect single element that will be known as total expenses. Okay, however, and gives already stepped in contact beagle segregate every each element of items so that we can understand how much ankle is investing in each of the expenses. Okay, so our solution batches with Joyce A Okay, that it combines simple income treatment, combines all of the elements into a single aggregated gets What choice? A is the correct answer. That&#x27;s all. Another solution.

Puneet Prajapati · Answer

Okay, so we will understand the specimen off income statement. Okay, for by that you will understand that how or we can say what type off items were having. Welcome statement. Okay, so let&#x27;s start with ridiculous. Okay, on the particulars. We&#x27;ve been right. Different events. And there is a second column course. We will have different type of amounts for every element off this statement. Okay, so first of all, we will write the item, which is actually most important to every type off business entity and for which the business entity has been established. That this saves okay, followed by their TV laugh. But they didn&#x27;t go. Okay, so other than cannon, boot and dressing, fixed deposit Interesting come any night but didn&#x27;t go. That is different from sales off words in services. Okay, so I would write saying so I would say services. Okay, so now these are the so both of them from price off the we&#x27;re telling go what? And he and I both business and okay, you can write down this form it, so that would be more clear to you and food ship. Okay. No daylight. Many types of expenses. Okay. Foremost expenses is like the FCC&#x27;s. The first very important expense is for us. Lost off works. So? So you can infer the meeting off. Stop what served from its name That it is the cost, which is efforting well, the were sold to the customer. Okay, after that, we have many name of expenses. Like electricity expenses. Okay. Electricity expenses ready for expenses. Okay, so I didn&#x27;t extend this line. So the telephone expenses, electricity expenses quarter by that. People have cartridge. Okay, which means in print. Okay. They&#x27;re not a lot of expenses, however, to make the income statement informative. Okay, We&#x27;ll make the income statement informative instead and stood off. Lend this different. The financial revelations segregated, or we can say, 80 a day. These expenses involved item that we knew us operating expenses. Okay, so these are the items which can be aggregated in do operating expenses. Okay, So all the expenses, which baby, I agree it in the net. Operating expenses will always be different from cost of goods sold. Okay. Bye, then. So because first of words in the activated with the saints, opportune services likes Let&#x27;s suppose you there is a business with instant furniture business, okay? Or electronic products. So the cost of raw material to possess the three sports will be considered in pasta. Okay. And then he had that Expenses will be considered in over the expenses. So in that case, we have identified over solution and that matches with Joyce be okay, So advertising expenses will not be considered as post op. It should be a idiot in operating expenses. So, Joyce, please accept dancer, that&#x27;s all for our solution.

Puneet Prajapati · Answer

Okay, so we will draw this specimen off constraint mint. Okay, So the purpose off income stripping will be who enabled the entity toe understand that how much profit or loss they have generated within the current financial year. Okay, that is the sole purpose off. Come second. Apart from that, it does not. But it doesn&#x27;t serve any purpose just to check that. How much profit and loss. However, there is a different former we are going right now. Draw this on bigger notebooks for future reference. Okay, so first of all, we will move in basics. Okay, So is there are items okay, under which, or we can sit. There are eggs under which every, particularly, when will be a the YouTube. Okay, so Buster won&#x27;t be having every new if you consider the news. Okay, then we have expenses. So England news, we have mostly says, Okay, I didn&#x27;t know. However, engagement expenses. We have bossed off good sword and operating expenses, okay? And this cannot be done that elements of expenses will transfer there and elements off and elements off revenues will be transferred here, so this will be so this will be happily game. Okay, you cannot do this. So? So it will. Largely after giving get No. So you can brown inference from this specimen that we will have We have a new expenses. So I did differently. Okay. However, you can write what I have intensified, but our choice matches with Joyce D. That operating expenses cannot be aggregated on death at every news act. Because it isn&#x27;t. I come off expense. Okay, so Joyce is the correct answer.

Puneet Prajapati · Answer

because you&#x27;re going to this day The concept Outstanding living You Okay, so we will write a technical at first Bordered by that we didn&#x27;t Mr. Okay, What is the alone against the words the business in today has a little white big who would send So this is you leave us do it however, but the end to be has not they see the Okay, so we Everton our technical division and got pixies. The abstaining revenue is the amount against which the business entity has delighted season services We customer But what happens? The entity has north received payment. It means the customer hasn&#x27;t yet baby among the position. So let&#x27;s understand. However it is clear, it is very clear from the definition. Okay, but we will understand toe an example of statistical data mystery. And it is Mr Thanks. Mr has delivered some goods and services. Thank you. Oh, but $5000. But what happens? Mr. X said Mr A, that he will pay off within Vinyard within two years depending on the business to business case. Okay. No, these $500 will be considered as outstanding living. Okay, that back which has to be collected from Mr X. So the Evin district people insect off outstanding that many so in the present gave the solution Matches with joys be okay because our standing revenue and cruel it could order every new. I didn&#x27;t change a bit. And you can I don&#x27;t she number one check number or your notebooks for future reference. And that&#x27;s on for our solution. Thank you.

Puneet Prajapati · Answer

Okay, So via going to understand, they don&#x27;t reading earnings. Okay, little suspects. Okay, so it is the Ammon Dogs. That is gender YouTube by the business entity. Okay, which is get or we can say, which is not distributed among shareholders. It is mostly used in expending business projects. Okay, so we have defined that forbids the actual meaning over terrain ordinance. Okay, so it is the amount of profits that of business and read it keeps in its reserves, and it is generally not distributed among she and orders. OK, so let&#x27;s is it borders and indeed Legionaries $1000 of profit in India? So it is very likely if the entities practicing the distribution of dividend to the extent off Lexus 70 was it that this $700 so $300 will be, but your dander needs and $700 would be that dividend. Okay, So if the dividend competent will put to shareholders, undertake, the angel wings will be used for expending business projects. Okay, because some time it happens that the company, you know, being need all forms. So that is why the this portion is kept always so that the completely never shot off us, okay? No, like this. Understand? There, there, they retain their next balance will come. Okay, so first of all, be everything that What is that, Jimmy New over carrying on things? No, that retained earnings. It will first come to melon cheek. Okay, by that. So because it deep is aims that what is the actual amount that entity is having in terms off results? Who explained the business projects who find the day to day business from the chance? Okay, so this account will be classified in there, this different. Okay, Now, what happens then? When they deserve specific purpose to prepare off particular fan inches or bigger statement so that it will be could be a day specifically for that purpose. Okay. And in that case, we have we will have, but it ain&#x27;t nothing. Statement, okay? And that who is also required aspect regulatory class. Okay, sold This one as well as this one will have retained earnings balance as them as the one of the components. Okay, which has to be reported. As for the evaluating requirement. Okay, so that&#x27;s all for our solution. So that is why we have two choices that matches with the current solution that this a and see So the correct choice. This, uh see. Okay, that&#x27;s all for this edition. Thank you.

Problem

Which of the following accounts would be reported…

Problem 20 Hard Difficulty

A multi-step income statement ________.
A. separates cost of goods sold from operating expenses
B. considers interest revenue an operating activity
C. is another name for a simple income statement
D. combines cost of goods sold and operating expenses

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting