0
This is a good thing!
Not sure what your question really is, might want to add a bit more to it. However, what happens in this case is that you have a profit and depending on who you are and where you are you just might have some taxes to pay on that profit.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is the level of sales at which revenues equal expenses and net income is zero?
Break even point!
What is The level of sales at which revenues equal expenses and net income is zero called?
break even point
Why does the direct write-off method of accounting for bad debts usually fail to match revenues and expenses?
Direct write-off normally does not match because the revenue from the sales was reported in an earlier period. It affects the revenues and expenses in the period it is written off in. If a company has many credit sales then it would be better to instead estimate an allowance for uncollectible credit accounts. That way the revenues and expenses are affected in each period and the sales numbers will represent the business' sales more accurately; provided the percentage is watched and adjusted as needed.
What is net income?
Net income is your revenues minus your expenses. For example, if a store had $100,000 in sales, but their expenses for rent, employees, supplies, etc is $60,000 then they had a net income of $40,000.
Is sales return revenue or expense?
It's a contrarevenue. It would show up in the revenue section but as a debit as opposed to a credit. A return would decrease your revenues but not increase your expenses.
Are revenues the same as net income?
Revenues are earnings from sales of products and net income is the difference between revenues and expenses.
What is the level of sales at which revenues equal expenses and net income is zero?
Break even point!
What is The level of sales at which revenues equal expenses and net income is zero called?
break even point
Why does the direct write-off method of accounting for bad debts usually fail to match revenues and expenses?
Direct write-off normally does not match because the revenue from the sales was reported in an earlier period. It affects the revenues and expenses in the period it is written off in. If a company has many credit sales then it would be better to instead estimate an allowance for uncollectible credit accounts. That way the revenues and expenses are affected in each period and the sales numbers will represent the business' sales more accurately; provided the percentage is watched and adjusted as needed.
What is net income?
Net income is your revenues minus your expenses. For example, if a store had $100,000 in sales, but their expenses for rent, employees, supplies, etc is $60,000 then they had a net income of $40,000.
Is sales return a revenue or expenses?
It's a contrarevenue. It would show up in the revenue section but as a debit as opposed to a credit. A return would decrease your revenues but not increase your expenses.
Why can firms not always reduce prices until they increase sales and profits?
if marginal production costs exceed marginal revenues, the firm will suffer losses, not profits.
Is net sales and net revenues the same thing?
No, a company's revenues may come many sources such as sales, securities, derivatives, etc.; sales result from merchandise sales.
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.
Is sales return revenue or expense?
It's a contrarevenue. It would show up in the revenue section but as a debit as opposed to a credit. A return would decrease your revenues but not increase your expenses.
Is difference between whole price and discount be considered as a loss in accounting?
No. You incur a loss when you sell something for less than its book value. So, for example, if land is on your books for $1,000 and you sell it for $600, you would incur a net loss.A net loss is the difference between revenues and expenses, when the result comes out negative. If a company has $3,000 in revenues and $3,500 in expenses, it would incur a $500 net loss.In accounting, sales discounts are deducted from sales price to compute the net sales
The margin of safety is equal to?
a. sales-net operation incomeb. sales-(variable expenses/contribution margin)c. sales-(fixed expenses/contribution margin ratio)d. sales-(variable expenses + fixed expenses)
