Which of the following would not be found on an income statement? (a) Rent expense (b) Dividends (c) Revenues (d) Net income. | Homework.Study.com (2024)

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• Which of the following does not belong on a single-step income statement? a. net sales. b. salaries expense. c. gross profit. d. rent revenue.
• Which of the following is NOT reported as revenue on the income statement? A. unearned revenue. B. Fees revenue. C. commission revenue. D. Rent revenue.
• Which of the following is shown on a multi-step income statement but not on a single-step income statement? a. net sales revenue b. cost of goods sold c. gross profit d. net income
• What is subtracted from net sales revenue to arrive at gross profit on a multi-step income statement?
• Which of the following will be shown on the income statement for a merchandising company? a. Revenue b. Gross profit c. Cost of goods sold d. None of these e. All of these
• Which of the following does NOT appear on the single-step income statement for a merchandiser: a. Gross Profit b. Total Expenses c. Cost of Goods Sold d. Net Sales Revenue
• What is subtracted from the Gross Revenue to calculate the Net Income on the Income Statement? a. Cost of Goods Sold b. Expenses c. Current Liabilities
• Which of the following statements regarding gross profit is NOT true? a. Gross profit equals net sales less cost of goods sold. b. Gross profit less other operating expenses equals income from operations. c. Gross profit is sometimes called Net Income. d.
• Which of the following statements is true? a. If revenues are less than expenses, the company has a net loss, and retained earnings falls. b. If revenues are greater than expenses, the company has net income and contributed capital rises. c. If revenue
• What type of income statement separates out the gross margin, operating income and net income?
• Which financial statement is a report of an entity's revenues, expenses, and net income/net loss for the period?
• What is the net income/loss given the following information: depreciation expenses = $3,900; banks service charge = $478; salaries expense = $65,800; revenues = $225,000; prepaid expenses = $5,000; insurance expense = $6,500; rent expense = $16,340; accou
• Which of the following is an incorrect statement? a. Income - Expenses = Operating Income b. Current Assets - Current Liabilities = Net Working Capital c. Net Profit = EBT - Taxes d. Operating Income - Interest PMT = Gross Profit e. Expenses = CGS + Opera
• Which of the following would be the best indicator of relative profitability? A) highest net income B) highest retained earnings C) highest return on equity D) highest income from continuing operations
• The income statement reports net income on what basis?
• Which of the following is considered a liability? A. interest B. revenue C. unearned revenue D. sales revenue E. rent revenue
• Which of the following elements are found on the balance sheet? A. Service revenue B. Net income C. Operating activities D. Utilities expense E. Retained earnings
• Which of the following is a contra revenue account? a. Utility Expense b. Sales Returns c. Unearned Revenue d. Interest Revenue
• Which of the following is not reported as an operating expense on the income statement? -Salaries expense. -Interest expense. -Rent expense. -Cost of goods sold.
• Which of the following should be reported net of the related income tax effect on the income statement? a. Loss due to a discounted operations of the business b. Loss due to sale of fixed assets c. Sale of an inventory item at a loss d. Sale of a tempora
• What is the term applied to the excess of net sales over the cost of goods sold? a. Income before income taxes b. Income from operations c. Net income d. Gross profit
• Revenue of $60,000 was earned, but only $45,000 was collected. Expenses of $36,000 were incurred, but only $30,000 was paid. What is reported net income? (Show work.)
• What is the term applied to the excess of net revenue from sales over the cost of merchandise sold? a) Gross profit b) Gross sales c) Income from operations d) Net income
• Determine the financial statement on which gross profit may appear. a. income statement b. balance sheet c. both the income statement and the balance sheet d. neither the income statement nor the balance sheet
• Which of the following is subtracted from net sales revenue to arrive at a gross profit on a multi-step income statement? a. Cost of goods available for sale. b. Cost of goods sold. c. Sales discounts and sales returns and allowances. d. Operating exp
• Which of the following statements is correct? a. When income earned by an entity is more than its expenditure, the entity makes a profit. b. When the income earned by an entity is less than its expenditure, the entity makes a profit. c. The profit that an
• What is the term applied to the excess of net revenue from sales over the cost of merchandise sold? a. gross profit b. income from operations c. net income d. gross sales
• What are the major elements of an Income Statement? A. Revenue, Cost of Goods Sold, Selling Expenses, General Expenses B. Revenues, Expenses, Gains, Losses
• Which of the following statements is true if the income statement credit column exceeds the income statement debit column on a worksheet? a. the company made a profit b. the company incurred a net loss c. the retained earnings account decreased during the
• What is subtracted from Gross Profit to arrive at Net Income? a. Operating Expenses b. Cost of Merchandise Sold c. Sales d. None of the above
• Which of the items below would appear in the Income Statement columns of the worksheet? a. Equipment b. Unearned Fees c. Prepaid Expense d. Net Loss
• The income statement contains: A. income only. B. revenues. C. expenses. D. both revenues and expenses.
• If sales amount to $150,000, rent expense is $2,000, utility expense is $3,000, and net income is $55,000, how much is the cost of goods sold? a) $95,000 b) $145,000 c) $90,000 d) $50,000 e) $148,000
• The cost of goods sold is found on which financial statement? a) Income Statement b) Statement of Retained Earnings c) Balance Sheet d) Statement of Cash Flows
• How does a net loss or net gain appear on an income statement?
• Which of the following is subtracted from net sales revenue to arrive at a gross profit on a multi-step income statement? a. Cost of goods available for sale. b. Cost of goods sold. c. Sales discounts and sales returns and allowances. d. Operating ex
• Which of the following are not included as part of the income statement? a. salvage value b. revenue c. depreciation d. income taxes
• A company sells 100,000 wrenches for $12.00 a unit. Fixed cost are $300,000 and net income is $200,000. What should be reported as variable expenses on the income statement?
• How do you find the revenue and the gross profit in an income statement?
• Which of the following is an income statement that contains subtotals to highlight significant relationships? In addition to net income, it reports gross profit and operating income. a) Subtotal income statement. b) Trial income statement. c) Single-st
• Which of the following choices is incorrect when defining the gross income of a business? a. Revenues from renting property is included in gross profit for rental businesses. b. Gross income for a business may be calculated as sales less returns and disco
• Which of the following statements regarding the income statements of corporations is not correct? a. Some corporations include cost of goods sold with the operating expenses. b. Some corporations show income tax expense as an operating expense rather than
• Which of the following expressions is incorrect? a. Gross profit - operating expenses = net income b. Operating expenses - cost of goods sold = gross profit c. Sales revenue - cost of goods sold - operating expenses = net income d. Net income + operating
• Which item would appear in the Income Statement columns of the worksheet? Select one: a. Equipment b. Unearned Fees c. Prepaid Expense d. Net Loss
• Which of the following income measures most closely reflect the Economic Income of a company? a) Net income b) Comprehensive income c) Recurring income d) Operating Income
• Which of the following is subtracted from Net sales revenue to arrive at a Gross profit? A. Operating expenses. B. Cost of goods available for sale. C. Sales discounts and Sales returns and allowances. D. Cost of goods sold.
• Which of the following is a true statement? a. Expenses associated with a "hobby" are never deductible. b. The deductibility of an activity's expenses in excess of revenues depends upon whether the
• Which of the following is the correct formula for calculating gross profit percentage? A. Net sales revenue/Net profit. B. Gross profit/Net sales revenue. C. Net sales revenue/Gross profit. D. Net profit/Net sales revenue.
• Which of the following expressions is incorrect? A. Gross profit - operating expenses = net income B. Sales revenue - cost of goods sold - operating expenses = net income C. Net income + operating expenses = gross profit D. Operating expenses - cost of
• Which of the following expressions is incorrect? a. Gross profit - Operating expenses = Net income b. Sales revenue - cost of goods sold - Operating expenses = Net income c. Net income + Operating expenses = Gross profit d. Operating expenses - Cost of go
• Which is the CORRECT order for items to appear on the income statement? A. sales revenue, gross profit, cost of goods sold, operating expenses B. sales revenue, gross profit, net income, operating expenses C. sales revenue, operating expenses, gross profi
• A business had revenues of $420,000 and operating expenses of $565,000. Did the business incur a net loss or realize net income? Explain.
• On which financial statement will Income Summary be shown? a. Retained earnings statement. b. Balance sheet. c. Income statement. d. No financial statement.
• Which formula "calculates" the return on assets ratio? a. (Net Income + Interest Expense)/Average Assets b. (Net Income + Extraordinary Items)/Average Assets c. (Net Income + Discontinued Operations)/Average Assets d. (Net Income + Income Tax Expense)
• In what section of the balance sheet are the retained earnings and net income amounts shown?
• The following amounts appeared in a classified income statement: Net sales $85,000 Net cost of purchases $22,000 Cost of goods sold $30,000 Operating expenses $15,000 How much was income from operations? a. $40,000 b. $52,000 c. $37,000 d. $22,000
• Which of the following equations is correct: A. Sales revenue - variable expenses - fixed expenses = operating income B. Sales revenue - fixed expenses + variable expenses - operating income C. Sal
• Which of the following financial statement elements are found on the balance sheet? a. Insurance expense b. Retained earnings c. Sales revenue d. All of the above
• Which of the following is affected as a result of an error in performing the physical count of inventory at the end of the accounting period? A) sales revenue B) operating expenses C) net income D) net cost of purchases
• Determine the financial statement on which sales revenue would appear. a. income statement b. balance sheet c. both the income statement and the balance sheet d. neither the income statement nor the balance sheet
• Which of the following is an incorrect statement if ending inventory is understated? A. Cost of goods sold is overstated. B. Net income is understated. C. Income tax is understated. D. Gross profit is overstated.
• Which of the following would immediately cause net income to be lower? a. Paid administrative salaries of $2,500 b. Paid $1,600 cash for raw material cost c. Depreciated production equipment for $3,000 d. Purchased $5,000 of merchandise inventory e. None
• Which of the following items is not shown on a single-step income statement? a. Cost of goods sold b. Interest expense c. Selling expenses d. Gross margin
• Fill in the missing numbers in the following income statement: Sales $644,900 Costs $346,400 Depreciation $97,100 EBIT $ Taxes (40%) $ Net income $ A. What is the OCF? B. What is the depreciation tax shield?
• Net income results when: A. Revenues=Expenses. B. Assets are greater than Liabilities. C. Revenues are less than Expenses. D. Revenues are greater than Expenses.
• Which of the following accounts/captions is not ever included in the calculation for Gross Profit? A. Revenues B. Cost of Goods Sold C. Net Sales D. General and Selling Expenses
• By matching revenue earned during the accounting period to related incurred expenses: a. net income or loss will be properly reported on the income statement. b. net income or loss will always be overestimated. c. net income or loss will not be determined
• Which of the following is affected as a result of an error in performing the physical count of inventory at the end of the accounting period? a. Operating expenses b. Sales revenue c. Net income d. Net cost of purchases
• The following statements correctly describe net income except: a. Net income is equal to revenue minus the sum of expenses and dividends. b. Net income is equal to revenue minus expenses. c. Net income increases owner's equity. d. Net income is report
• Which of the following items appears on a contribution margin income statement but not on a GAAP income statement? a. Sales b. Gross margin c. Net income d. Contribution margin
• Which of the following would be an argument in favor of using residual income models in performance measurement? A) All forms of residual income are consistent with discounted net cash flows for any method of depreciation. B) Residual income focuses on hi
• Which of the following is a true statement pertaining to segment income statements? a. Only present the individual segments' net income, not total company net income. b. Only include variable costs. c. Do not present a segment margin. d. Do not includ
• Produce a gross margin income statement that includes taxes and net income.
• What is the net income under variable costing in year 2014?
• What is the net income under variable costing in year 2013?
• If a company earned $75,000 in revenues, had $18,000 in expenses, and purchased assets for $9,000, what would his net income be?
• Prince company sells 100,000 units for $13 a unit. Fixed costs are $350,000 and net income is $250,000. What should be reported as variable expenses in the CVP income statement?
• The Net Income amount from the Income Statement is transferred to which of the following statements? A. the loss statement B. the profit statement C. the retained earnings D. the balance sheet
• Which of the following would not be included on an income statement? Accumulated depreciation. Insurance expense. Cost of goods sold. Extraordinary loss.
• What is the residual income when net income is $400K, operating assets is $50K, and assets are $100K?
• Which of the following items would appear on a balance sheet? A) Dividends B) Revenues C) Expenses D) Retained earnings
• Which of the following is an incorrect statement? a. Revenue - Operating Income = Gross Margin b. Revenue = Price x Quantity sold or TR = P*Q c. EAT = EBT- Taxes d. Income - Expenses = Operating Income e. Revenue - CGS = Gross Profit
• Which of the following is the income statement formula for the absorption costing method? a. Sales revenue - COGS = Gross Profit margin - all fixed expenses = operating income. b. Sales revenue - all variable costs = contribution margin - all fixed expens
• By matching revenue earned during the accounting period to related incurred expenses: a. Net income or loss will not be determined. b. Net income or loss will always be underestimated. c. Net income or loss will always be overestimated. d. Net income or l
• Calculate the net income/loss given the following information. Depreciation expenses = $3,900 Bank service charges = $478 Salaries expense = $65,800 Revenues = $225,000 Prepaid expenses = $5,000 Insurance expense = $6,500 Rent expense = $16,340 Accounts R
• How will the income statement be affected if an accrued expense of $450 is forgotten to record at the end of the period? a. Net income in the income statement will be overstated by $450. b. Net income in the income statement will not be affected. c. The i
• Which of the following items would be reported net of taxes after income from continuing operations? a. Gain or loss on the sale of the property. b. Loss due to a factory strike. c. Interest expense. d. Gain or loss on the sale of a major segment of t
• Which of the following statements is most correct? 1) Gains and losses are similar to revenues and expenses because they occur with the same degree of regularity. 2) Gains and losses are unlike revenues and expenses because they generally do not change
• Which of the following is classified in an income statement as an operating expense? a. Cost of goods sold b. Income tax expense c. Dividend revenue from investments d. Advertising expense e. Interest expense
• What is the difference between gross revenue and gross income for a business?
• Which of the following totals and subtotals are not found on a multiple-step income statement? a. cost of goods sold b. total current assets c. net sales d. total operating expenses e. net income
• Find the total expenses and net income loss. Revenues: Service Revenue $25,000 Expenses: Salaries Expense $2,350 Supplies Expense 900 Depreciation Expense Equipment 360 Rent Expenses 190
• Multiple-step income statements show: a. gross profit but not net income. b. neither gross profit nor net income. c. gross profit but not the cost of merchandise sold. d. gross profit, cost of merchandise sold, income from operations, and net income.
• Which of the following statements is true concerning income if production exceeds units sold? a. A higher operating income will result under a variable costing income statement. b. A lower operating income will result under an absorption costing income
• Which of the following is correct when beginning inventory is understated by $1,300 and ending inventory is understated by $700? a. Net income is understated by $600. b. Net income is understated by $2,000. c. Net income is overstated by $600. d. Net inco
• The net income reported on the income statement is $90,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,700 and accrued salaries of $1,300. Net income, as corrected is: a. $87,300 b. $90,000 c. $88,700
• Which of the following is NOT commonly found on a functional income statement prepared in accordance with GAAP? a. Cost of Goods Sold b. Selling Expenses c. Contribution Margin d. Administrative Expenses e. Gross Margin
• Which of the following is correct when, In the same year, beginning Inventory is understated by $1,620 and ending Inventory Is understated by $860? a. Net income is understated by $760 b. Net income
• Which of the following statements about the expanded income statement for a business using the periodic inventory method is false? A. Sales revenue minus sales returns and allowances minus sales discounts equals net sales. B. Net sales minus cost of goo