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
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Select one real company located in your home state. Identify at least four different types of stakeholders in this company
What will be an ideal response?
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
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
percent, and its marginal tax rate is 35 percent. Refer to Galveston Excursons Corporation. If the ship produces equal annual labor cost savings over its 10-year life, how much do the annual savings in labor costs need to be to generate a net present value of $0 on the project? (Round to the nearest dollar.) Present value tables or a financial calculator are required. a. $ 83,685 b. $ 97,685 c. $146,906 d. $226,008
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