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How do you do a budgeted income statement for a merchandising firm?
Wiki User
∙ 9y ago
To do a budgeted income statement for a merchandising firm you will need to look over their sales budget and cash budget. You will also need to prepare a finished goods inventory and come up with an administrative expense budget.?æ
Wiki User
∙ 9y ago
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Which financial statement shows how profitable the firm has been?
Income Statement
What accounting statement best addresses the fact that a firm that's profitable on paper can be forced into bankruptcy?
income statement
Why is the examination of the balance sheet and income statement not adequate in evaluating a firm?
There are many other factors to the success of a firm than the balance sheet and income statement. It is important to look at the company's past performances, its potential, as well as its leadership.
What is the income statement?
The Income Statement is an accounting of income and expenses that indicates a firm's net profit or loss over a certain period of time, usually quarterly or yearly - a statement of operating expenses & revenue for a specific accounting period.
The income statement is the major device for measuring the profitability of a firm over a period of time?
The income statement is in fact the major device used for measuring the profitability of a firm over time. Unlike the balance sheet that just shows the firms net worth an income statement shows both the revenue and expenses over a time period.
Difference between Income statement and Profit and loss account?
Income statement shows only income of the concern in a particular period but Profit and loss statement shows both income and expenditure of a firm or concern for a particular period as well as it helps to know the performance of the organisation....
Why examination of balance sheet and income statement not adequate in evaluating a firm?
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Prepaid income balance sheet or income statement?
Prepaid Income is a balance sheet item. Income received in advance is treated as Liability of the firm. The same get transferred to Income Statement / Profit & Loss Account when income is earned. Followed by Accrual Accounting concept and Accounting Period Concept, such income received before they are actually earned are booked as a liability and get transferred to Income Statement as income upon actually earning them.
Who does Residual income of a firm belongs to?
The residual income of the firm belongs to
How is the income statement related to the balance sheet?
Income Statement is another type of a financial statement. It summarizes activities and events of one company which happened in a period of time. Usually, there are monthly, quarterly, and annual income statement. An income statement will show all revenues, all expenses, and net profits in detail.On the contrary, a balance sheet show a company financial positions such as assets and debt at that precise date. A balance sheet will show company's assets, liabilities and sharesholders equities.Assuming no asset or liability changes, one take the net profit figures from an income statement and add it to the shareholders equities portion.For financial statement analysis purposes, having either one is useless. It is essential to have both income statement and balance sheet together.--------------------Additional AnswerBalance sheet indicate what the firm owns and how these assets are financed in the form of liabilities or ownership interest. While income statement purports to show the profitability of the firm, the balance sheet declineates the firm's holdings and obligations. Together, these statements are intended to answer two questions: How much did the firm make or lose, and what is na measure ot its worth?An income statement (profit and loss statement) summarises the company's income and expenditure coming down the the profit or loss for the period. This is a statement over a certain period of time, for example a month or a year. A balance sheet summarises the assets and liabilities of the business and is a statement at one period in time
An officer of Carson Company recently commented that when he receives the firm's financial statements He looks at just the bottom line of the income statement -- the line that shows the net income or?
An officer of Carson Company recently commented that when he receives the firm's financial statements. He looks at just the bottom line of the income statement -- the line that shows the net income or net loss for the period. He said that he does not bother with the rest of the income statement because "it's only the bottom line that counts." He also does not read the balance sheet. Do you think this manager is correct in the way he uses the financial statements? Why or why not?
Does the income statement describes the financial position of a firm on a given date?
Yes, an income statement is a document used to show what the businesses revenue and expenses are during a specific period. It shows where all the money has gone and where the money has come from.
