Which of the following statements about a multistep income statement is correct?

A. It groups all revenues together.
B. It reports a different amount of net income than a single-step income statement.
C. A key measure available on a multistep income statement is the amount of profit earned over the cost of goods sold.
D. It includes expenses that would not appear on a single-step income statement.


Answer: C

Business

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What will be an ideal response?

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If sales and expenses both rise by $100,000

a. residual income will increase. b. return on investment will increase. c. return on investment will be unchanged. d. asset turnover will decrease

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Galveston Excursons Corporation is considering the purchase of a new ocean-going vessel that could potentially reduce labor costs of its operation by a considerable margin. The new ship would cost $600,000 and would be fully depreciated by the straight-line method over 15 years. At the end of 15 years, the ship will have no value and will be scuttled. Galveston Excursons' cost of capital is 14

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Business

What are profit sharing programs?

A. An individual incentive plan that provides a bonus based on that employee’s profitability B. A program that provides a portion of company proceeds over a specific amount of time to the employees of the firm through a bonus payment C. An example of giving praise D. Incentives typically based on improvements in workplace safety of material savings E. Pretty much the same as a gain sharing program

Business