which-of-the-following-is-a-measurement-of-earnings-that-represents-the-profit-before-interest-taxes

Question

Which of the following is a measurement of earnings that represents the profit before interest,
taxes, depreciation and amortization are subtracted?
A. net income
B. retained earnings
C. EBITDA
D. EPS

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 are going to understand the trial balance. Okay for her by that Beeville indistinct the hallway. How weekend you hear a different version of travel buttons all together. Okay, so it is. Ah, summarised Form off on the ground. Bellen. Sears! Okay. Who the pair? Bellen ship. Okay, so, first, if I Let&#x27;s suppose all lovey every forever be everything. The technical definition, however, leaving in this day that how booties toward different version of events. Let&#x27;s suppose there are 100 thousands of transaction in a business entity. Okay? Because of business, entity has to deal with multiple times multiple supplies to run the business keeps will actually 10,000 evictions. Okay, so in accounting is employed Lettuces entity Who records the transaction? Okay, So older by that, the content it was those projections. Okay, after posting the on my back, the So what? What step? The posting give us It gives ah, high level pale off all the account balances. Okay, there s our pal. Balance gives us summarize form of competences and from travel INTs, VP, daily bed and shit. However, I&#x27;m interfering. The second possessed with the definition, like my drawing the arrow. However you can right this example. Very clear. Okay, I&#x27;m drying the arrow to make the things very, very clear. Okay, so balance sheet is the final step in patient off hundreds of statements and their trial balance is the lots last stepping stone to abandon ship. Okay, now, let&#x27;s suppose the counting Mrs 50 Transactions deck would very, very important from the business point of view. So those 52 elections were left to be recorded forward by that left, people stared, and their effect was also Lord implant balance. So? So the banshee per patient will be wrong. Okay? No. What happens? There comes the concept. A concept off. And just in 12 minutes. Well, that rescue, okay? And just simply ambulance water. What? It will have just take a lord. So the ambulance will off course have the effect off 10,000 transition. However, when we will say when we say that adjusted evidence, it will also have the Fecteau 50 transactions. Okay. Now, from these total effects, they will prepare over Maren. She? But what happens? These salvation? Well, in total, I have a single effect on a single ago. Okay, So these these people on the chin. We&#x27;ll have a symbol single effect on a single ago. Like the combined effect we can see noticing the combined effect on a single account that we know that that people less do you notice? So under Dana thinks what we have in the earnings we have our perfect our laws and nurtured during the current financial year. Retained earning balance at the beginning often engineer and any wouldn&#x27;t be through the shared orders. OK, so these 50 transaction, or we can see any number of transaction will have effect will ever direct effect on this. Okay, so now what we have what we have that the balance on the balance of retained earnings are just to trial balance and Bill in chief will be different by that. So because 52 election will have a combined effect on tenements and that is why we have different parents over Dana, Knicks, honor, justice, tell evidence in different balance sheet level. Okay, so that that matches with So they retained earnings that count, which will have different. But it&#x27;s on both the statements. Okay. And back matches with joi sey engages off, but in Kocian. Okay, So the correct choice is joi sey. Okay, that&#x27;s all for our solution. Thank you

Puneet Prajapati · Answer

Okay, So you are going to understand They don&#x27;t deposition, Okay? Little concepts. That How movie? The Gordie charging more in that position. Expense. Okay. The 1st 2 the amount off expense, most of the amount of experience that would be charged. Who comes who? The select beer and off a sect on yearly basis. Okay, so this definition shows that the deposition is an amount which is charged who income and income statement who show that baby is dearly the reason value of the asset, if you will use the except for of it production, Get a city. Okay, let&#x27;s suppose you have purchased the machinery on starting off your business, okay? To produce for nature processed Jaber air chairs and tables like that. Okay, so if you have purchased machine beyond first and very 2019 then let&#x27;s suppose you have purchased off $1000. So will actually remain same or the upcoming years. No, it&#x27;s not revenge. It will be decreasing. Okay. The value will decrease by that. So because it&#x27;s it will be used accordingly. Produced the for me. German. Did it hurt? Okay, so regard the deposition. We have first method that he will do like this. They record two types of entries. Okay, Their position, account epic. Who? A cynical. Okay. And it will be about this is the general in three. Okay, we have passed. Imaginative. So this is a direct entry to the court in that position, Like the deposition will be judged Do the respective, like machine three or any table for nature that is used for business purposes. Okay, so and it is a second mattered. And second method is used very because it very widely in the industry. And there&#x27;s a magnet off for security purposes. Basically. So that position account deputed to acumen into that position. Okay, so so in second method, what we have didn&#x27;t understand first method. Then they will face problems later, toe that however, we will understand. Second method. So it is the expense. It will be transferred to income statement. Okay. Like it down. This is the that. I don&#x27;t before shoot in second shoot for your difference. Okay? And I don&#x27;t do that. Precision expense will be transferred to incoming statement. Then I did actual profit and loss. Okay. However, a community that position will be shown in bed and cheap Okay, Now why do we use second method Will understand this. That&#x27;s first of all. See this? That gift their position expense is charged in first matter. Then I said value is also decreased by the proportionate amount. OK, but in second method, what happens? The assert is reflected and violent Shoot at the actual cost. And the person that it is an expense charge on the early basically transfer through the circle community deposition who see So the identity will be able to see that Helmand deposition expense. We have charged so on. Okay? And how much book value off A sets an actual cost of asserts via having like no one ever Belen. Shit. Okay, so that is right. Accumulator deposition will be transferred to that and cheat. Okay. And back matches that matches. So the solution matches with the choice A. Okay, so the correct choice is choice. Okay. Always you can write. She&#x27;d violent you do for your future reference. That&#x27;s all for our current solution. Thank

Puneet Prajapati · Answer

Okay, so we are going to understand the meeting off 12 grand villains and followed by there. We will understand that. How can we arrive at a different version off planted? It&#x27;s OK. So first of all, we have return of a technical definition. So her pal balance provide a brief 11 summary off these parties. Okay? With which the business entity has transacted. So we have returner technical declaration how ever we will understand. Very clear soon. But exactly. OK, so a travel balance is ah leaving first. Draw a specimen off Cal balance. Okay, that How does it look like followed by that people in this time, But how we can arrive at different type off evidences. Okay, so first of all legs, suppose there is a business entity that is ABC company who deals in furniture. Okay, so it has transacted with many entities to run the business like it s solitude with suppliers. A test run naked with multiple customers, bees within the country outside the country. Okay, so they&#x27;re not. They will be many, many types off. Bing does okay. Many types of vendors, many types off customers. So suppliers and customers, suppliers and vendors would be used interchangeably. Okay. So suppliers will have operated parents always most of the times and customers will ever David. But it&#x27;s okay. So let&#x27;s suppose after recording all the transaction that has that has been entered into by a busy company and other different parties, let&#x27;s suppose the founding Mrs 50 off them. Okay, 50 transactions off. The total religions has have been missed by accounting for for recording. So the effect of these transaction. So the effect of these transactions will not be present here and will not be present here. Okay, now what happens? The effect off all the transition will go to regained on its by there. So because the establish business entities for motive over profit and Intertainer lives be classify other profit or loss generated for the car India. Okay, Now what happens then? Then in a content encounters with these 50 transaction as mist. Okay, Now what happens that the counting tries to captured the effect in involved in a just in 12 minutes? Okay, Now adjusted trial balance work. What it will include it will include all the current elections which have been encountered with by content less bless the Miss tronics and practice 15. Mr Androgen, in the current case, Okay, so But until elections means which have been used to prepare these air goes okay, these balances which have been included to give these effects No. If in orderto account for all the Mr Election and current origins, V, we will classify. Or we can send people cancer, upper yearly profit yearly profit and loss, the transfer yearly profit and loss to retain that Mexico. So therefore, this account will also be included in post closing plan. It&#x27;s okay by that. So because all if let to suppose whatever drying the changes in list I don&#x27;t those selection will be will be related to revenue side or expense. It okay? Because in business, with this transaction beacon in counterfeit I don&#x27;t live in you. Okay, either it will be giving sales to us, all right, That it will be in nature off expenditure. Okay, so the next step will be so the profit or loss and maybe turns a profit, profit and loss dearly, who retained earnings so that is very retained. Earnings will also be trampled. Okay, So our current solution matches with okay. Our current solution matches with Joyce E. That&#x27;s all we have. And Mr So Far. Okay, So Joy sees the correct answer. That&#x27;s all part of a solution.

Puneet Prajapati · Answer

Okay, so we are going to understand the golden rule. Okay, so these rooms have accounting will be applicable throughout accounting as a subject. Okay. Ciclista fun. We went up that I think it would be easy going mistake. And there is also one more thing that there is no very substantial logic behind that. Why? These are rules framed like this. And why so do not have such confusion. Okay, just take a note of that. And when you will practice mold, you will get hand off. Okay? So increasing expenses and a sex, we will give it to them in case off degrees, expenses and the stakes be even give up that I did with them. So these are simple rules. Like whenever they will be increasing expense. Like whenever the business center people, you know, in car such expenses or purchases Somerset&#x27;s than those who constantly deputed and they will be They&#x27;re neat or corresponding reduction in expenses in Essex. So we&#x27;re doing so they don&#x27;t find types of pounds. Me 1st 1 is SX, then second, his expenses so increasing liability Okay. Capital and revenue. There is a corresponding credit. Okay. Whereas engaged over reduction in liability. Africa and revenue problems. There is a corresponding never. Okay, so the first rule off second. So the second door stairs that increasing liability capital and revenue account. We&#x27;ll have. Okay. Did anybody first and corresponding? Angry do, However, these we will understand that. Okay, so let&#x27;s take example to understand the situation. Let&#x27;s suppose there is mystery. Okay, Who is that? You know Oh, but or not our business from nature. Okay, Now what happens? There is a second old superstar. There&#x27;s a second bus and Mr Being So what happened? So Mr Beef frequently purchases for nature, perhaps from Mr Be like J R. Stables. Okay. On sort of products on Mr Biesecker. Okay. I will pay you advance money. Okay. I&#x27;ll be your advance money in this in this financial year. And you can do you even it up. Words like chairs and tables in next financial. So everyone&#x27;s money has been received in financially, but delivery will happen in financial year. Okay. No, what happens then? This. So there are two separate randich. And first, when you first witness deceit advance money and 2nd 1 is delivery will happen. So? So in current in financial year, then this advancement. He has been deceived. We will not recognize the value of goods and services as income in books of accounts. He okay, But when delivery will have been in next financial year backed amount, which has been recorded and financially, everyone, they will be an adjustment in three. Record the income in financially or two. Okay, so who convert the amount that has been recorded in financial year into income off financially, they will be just vanity. Okay, so in that case, so I just one entry will include or we can say, with the state. McDavid who? Lebanese vehicle, How Nixon to stay. Okay, so let&#x27;s understand, Exposed that if Mr A has received word wants money from Mr B. So they&#x27;re increases a liability off mystery. The words, Mr B. Off off delivery, off chairs and tables to Mr Be. Okay, so they&#x27;re increase a liability. And what we have said, if there is increasing liberty, they will give up. We will give up, ready to them. Okay. Now, in case off adjusting and re when we will convert the advance money into income over an engineer too, because whenever there delivery will be made that they never knew or the advance money that has been received in financially of one. Okay, will be recognized as income in second financially. Yet based on the delivery made by mystery for listener be okay. Now, In that case, if there is adjustment Anti so there will get gonna spending Dabiq to the same account. Which, which hag? The crediting, for instance instead. Okay, so that&#x27;s how we do in the campaign. Like, let&#x27;s suppose advance advance payment. Okay, so we have. So let&#x27;s say so. We haven&#x27;t seen the advance payment, okay? No one ever. They will receive advance payment before delivery a woman&#x27;s offices. It will create a liability having a day of work off delivery of goods and services to estimate. But then in next, financially and supple lets it. This is a matter often interrogated, and we have come through financially. No one. We will deliver the goods and services so far in peace and liberty, they will be a petting. Okay, okay. Now, in case of delivery, they really direction in liability by because for fear as a liability, its delivery off goods and services to estimate mr me No, we believe a corresponding damage to them That would do the same in advance and payment. First of all, it will get credit. Then it will get double for the same. All. Okay, so back matches rip. Okay, So the whole process his Mac matches with choice. The for the current question that this the ankle that has bean collected. Okay, so they income has been collected in advance in financially oven. However, it will be recognized in financial year. Who? Okay, based on the delivery of goods and services to Mr Be. Okay, that&#x27;s all forever. Solution. However, we have the right. Joyce G is correct. OK, thank you.

Problem

Which of the following measures the portion of a …

Problem 20 Easy Difficulty

Which of the following is a measurement of earnings that represents the profit before interest,
taxes, depreciation and amortization are subtracted?
A. net income
B. retained earnings
C. EBITDA
D. EPS

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