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Are revenues the same as net income?
Revenues are earnings from sales of products and net income is the difference between revenues and expenses.
By matching revenues and expenses in the same period in which they incur?
By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement.
Is the measure of net income for a merchandising company conceptually the same for a service company?
Well if you look at it by the basics you will see both use the same Net income = revenue - expenses. However the income statement for the service company subtracts the operating expenses from the revenues to arrive at net income. The merchandising company subtracts the cost of merchandising from the revenue to arrive at gross profit. It then subtracts all other operating expenses to arrive at net income.
Is the measurement of net income for a merchandising company conceptually the same as for a service company?
Well if you look at it by the basics you will see both use the same Net income = revenue - expenses. However the income statement for the service company subtracts the operating expenses from the revenues to arrive at net income. The merchandising company subtracts the cost of merchandising from the revenue to arrive at gross profit. It then subtracts all other operating expenses to arrive at net income.
Is total taxable income the same as total income?
No, total taxable income is not the same as total income. Total income includes all sources of income, such as wages, interest, dividends, and capital gains. Total taxable income, on the other hand, is the portion of total income that is subject to taxation after deductions, exemptions, and adjustments are applied. Therefore, total taxable income is typically lower than total income.
Net income the same as net earnings?
Earning is more in sense of sales revenue while net income is different in this sence that it is the difference between revenues or earnings from expenses.
Revenue matching in the income statement means?
This is the basic principle of accrual accounting that revenues of one fiscal year should be matched with expenses of the same fiscal year and that is called matching concepts and income statements shows the same as well.
Is sales and total operating revenue the same thing?
Sales is the amount received from selling the goods while total operating revenue is the revenue which is earn only through basic business operating activity.
When is the forecasted growth rate in residual operating income the same as the forecasted growth rate in sales?
When ATO remains constant.
How making more products that can be sold in a period can increase a companys operating income?
The operating income increases when a company makes more products than it can sell in a period. It is cheaper to produce more at one time and the profits increase because the price stays the same.
Is net gain the same as net profit?
No, Net profit is always from revenues from operating activities while net gain can be from any transaction for example from sale or disposal of old fixed asset etc.
Is net revenues the same as net sales?
yes
