which-of-the-following-accounts-would-not-be-reported-under-revenue-on-a-simple-income-statement-a-i

Question

Which of the following accounts would not be reported under revenue on a simple income statement?
A. interest revenue
B. net sales
C. rent revenue
D. operating expenses

Puneet Prajapati · Accepted 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

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 let us understand the current solution, But before moving to the institution vigilance and understand the concept off religious statements. And how do we teach to the occupation of financial statements? Okay, let&#x27;s suppose we have Ah, business off. Setting radio gives. Okay. Okay. This is over business. OK, so whenever be sell, you begin to customer. Or more specifically, Children. What happens? It consists off to evens be sell video games to the beatings. Okay. The parents of the Children and the parents give us money back against the video gives. So they&#x27;re supposed to be up financial drawn. The chip often. Angel religion is a plan in action. Victor. Ricin Villas exchange off money against the goods and services. Okay. It is very, very well industry. Okay, now what happens in the business? There is a cities of transactions. Let&#x27;s suppose 100. Okay, So what happens? Who to get a clear idea that how many transactions has the the entity has entered with other entities or other persons? Okay, we need to record or those transactions. Okay. After that, we get a detailed summary that war type off transactions happened with veg entities. How much the amounts. How much the amounts of the transaction happened with entity And, like, Vice. Okay, that comes from the posting. So posting provides it. They&#x27;re detail. Somebody off transactions happened with them. Entity. Okay. And an entity or different types of amputees. After posting, we have some organization. Now at this immunization process. What happens? This dictated details. Memorization becomes very brief in this process, and this is done to trial ballots. You can know this diagram on your notebooks also. Okay. No. After moving to brief brief civilization, they Then finally, it comes to the financial statements. There be prepared balance sheet. First of all, we do not prepared Ben, and she&#x27;d be prepared Income statement then moved to balance sheet, then moved to statement of cash flows. Okay. And like rice, So this is the process. Okay. This is also loan as accounting cycle. This process is known as a camping cycle. The process off accounting in any type of organisation. Okay, So we have a business of video games and the process to record the transaction. Italy and off probation, orphanages, statements. A potion has Oz. Says what? Which of the falling is not included in the ban. Interesting. So for the information financial stake names will include First of all, it will include income statement. What is income statement? What is well in sheet? We will discuss Ben. We will face the problems allergic to sit concepts. And then you just take a note off it for the for the current solution. OK, then we prepare the balance sheet, okay? And it last beep. Very cash. Mr. Yes, Mr. Okay, that&#x27;s clear. So the potion disasters. Which of the following is not included in financial stickers? So the correct answer we can die from the from from about explanation we have made so far that make choices The statement off owner investments. Okay, that statement is not included in financial statements, so you can know down. So she&#x27;d one she toe on the in orders for back a revision. However Indian, we have a conclusion uncertain as correct choice says the Okay, that&#x27;s all for another solution. Thank you.

Puneet Prajapati · Answer

so v are going to win this time the you both have done. Okay, so there are actually three types of oppose. 1st 1 is 1st 1 is really about Okay, But you&#x27;re going to understand. And the other two are nominal account in person. Okay. So you can write up, write it down, but I&#x27;m going to write. Or that we will understand it through simple example. There my movie opened. Really? Coming on. I really need. It is the type of a fountain that is never post okay in a and it is also carry forward strong. Couldn&#x27;t financial yet. Okay, gun fund engine. Who next? Financial. So we have You&#x27;re done. Actual definition off. Real account. Okay. Now we will highlight the main characteristics off the telecom set so that you will be able to identified that which is the real account and venture. So, first of all the characteristics, it is never closed to another. So you can infer the never closed rhetoric out like it is never transferred to another. Okay, Because at the end of financial year, what do you do in real world? The actor view John&#x27;s foot If you transfer the balance off, we transfer the balance off. But I&#x27;m Thalia cows too. So in a difficult, we will learn they don&#x27;t. So Okay, when we will face such problems, however you can take it like that that it is never goes to another account for statistics the second punish, it is also carried forward from current financial year. Next. Okay, so this is the most important characteristics, which have I like it with the Lupin. However, we will take example now. So what? That what? The elegance actually fixed the set. I think this exile those machineries mostly Mitch v with the business entity purchase to produce saleable goods, store the customers okay. And in when Drea or in general, we Kinsey sex liabilities. Because sex will include all time of us stand herbal, intangible fixed, non fixed, current, non current. Okay. And same case with the liabilities. Also. So 40 what? I have returning. Example. The phone booth. Four dates of goals. Okay. Will be always be really Okay. So and I said let&#x27;s suppose we have or we can say ABC Company has the eight Yvonne&#x27;s insurance. Okay. Know what happens? Such advance women of insurance four. Next. Yet in good, indeed. Oh, Byler Big goes so $500. It&#x27;s for insurance for next financial year. Next financial. So this $500 it&#x27;s for next minute. However, it has been paired in during financial, So $500 will be considered as in is there And we can also take it like that that a basic of practices who be insurance experts expenses in advance. So in that case, every year the payment of $500 will be paid. Okay. In that case, $500 will be considered as an insect for every financial year because they basically practices the same. Okay, if $500 will be considered as an aside for every financially because off being it in advance, then it will never be closed. Or we can say it will be gay for from one currant bun financially too. Next manage, because we haven&#x27;t been an example. Also a suicide. But another type of or we can say for a sex be open the real account. Okay, so for the current caution, our solution matches Joyce E Okay. However, you can write down cheap one. She want to your notebook for future reference. So but the choice they will be correct. OK,

Puneet Prajapati · 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

I understand being meaning off on welcomes. Okay? Sort of. But that people understand There what is the actual implication or P State comes. Okay, so just the type of account. Okay? Which will have opposing effect on the previously gender. A couple dependence is okay. Although we have returned our technical definition here now, I ve vill understand this stipulation through an example. So let&#x27;s suppose there is the Mr B. Okay, who isn&#x27;t dealing off? Let&#x27;s video games. Okay, So, Mr Reyes dealing in business off Williams and Mr C is a trustworthy customer off Mr B. No. What happens, Mr. ISS Cell, So I didn&#x27;t read begins to Mr C. Okay, so after selling video games Mr A has recorded Let&#x27;s it $1000. As is revenue. Now what happens after receiving the video games for Mr A Mr Sea verifies that the video games that mark I find it really gives. OK, So what happens? Mr Cedar? Don&#x27;s back. Mr. C returns back those video games too. Mr. B, seeing that that the games that fight occurred So the actual work which which Waas which were done? No mystery boss. 500 voters. Okay, so these are there? Does Sailor does know what happened? What is what is the actual implication off contract count? Is that that then Mr is sold? We do games must to see there is never a balance off $1000. It means it visited the comfortable from Mr C. Okay, the governable from Mr C. But whatever, Mr. C return games worth off $500 to Mr A. Okay, so that the next recoverable about from Mr C as a customer now will be $500 only. Okay, so it is a sailor dunce. Okay, this is a sailor turns off $500. Now these account so sales this town will be off contra. They&#x27;ve a new accounts. Like, if it really was down on the Children renewed. That has been previously gender. Okay, so now that matches with our current solution matches with joy, See that this is this found. Okay, so that&#x27;s so you can write down what I everything so far, along with the example for everything. Okay. However, Jean saw Joy sees the correct answer. That&#x27;s all for the solution.

Problem 23 Medium Difficulty

Which of the following accounts would not be reported under revenue on a simple income statement?
A. interest revenue
B. net sales
C. rent revenue
D. 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