0
Total production costs should be equal to cost of goods sold in the proforma income statement. True or False?
Wiki User
∙ 11y ago
False
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What should accompany the income statement of a company using earnings management?
An income statement, enhanced by earnings management without adequate disclosure, may well be a fraudulent income statement.
The Retained Earnings Statement should be prepared?
after income statement, before the balance sheet
What is the definition of performa?
Performa is a mis-spelling of proforma. Use Proforma: Description of financial statements that have one or more assumptions or hypothetical conditions built into the data. Often used with balance sheets and income statements. Example: Provided to show rent or income projections upon acquisition of Commercial Real Estate, or a Business so as to justify obtaining of financing for the purchase - Used to demonstrate the Borrower's ability to repay the loan based on income projections taking into account Mortgage or loan terms, and actual or projected income based on reasonable and qualified assumptions.
Should credit sales be included on the income statement?
Wat
Is a membership an intangible asset?
Membership paid out to a 3rd party is an expense and should be in the income statement. Membership income would be diferred income (a liability) until it can be recognised as revenue under IAS 18 then it'll be put in revenue within the income statement.
Should investments be listed under expense or revenue in an income statement?
The money that you invest should be counted as an expense. The income from your investment would be considered revenue.
Is net income a debit or credit in the statement of cash flow?
In a statement of cash flow a net income is a credit, which should always be the same amout of cash in your balance sheet. (nice check)
What is the order that the financial statements should be prepared?
the income statement is first, followed by the the statement of owner or stockholder's equity balance sheet, and last the cash flow statement.
Should cash flow statements be published?
Yes cash flow statement is also published along with income statement and balance sheet.
When revenue should be recognized on the income statement according to GAAP who is addressed?
business entity assumption
Where to post bad debt expense on income statement?
It should be posted under operating expense.
Land costing $138,463 was sold for $175,514 cash. The gain on the sale was reported on the income statement as other income. On the statement of clash flows, what amount should be reported as an investing activity from the sale of land?
37,051
