The finance category generally refers to the management of money and financial transactions within individuals, organizations etc.
Question: The balance sheet is composed of: a) owners’ equity, assets, and liabilities b) expenses, revenue, and net income c) revenue, expenses, and owner’s equity d) assets, expenses, and net income e) assets, liabilities, and revenues Answer: The correct answer is a) owners’ equity, assets, and liabilities. Explanation: The balance sheet is a financial document …
Question: Carrie is creating a personal balance sheet. The heading includes the period of time that the balance sheet represents. Which could be the heading of Carrie’s balance sheet? a) Carrie’s Balance Sheet (January 1, 2021)b) Carrie’s Balance Sheet (January)c) Carrie’s Balance Sheet (Friday, January 3)d) Carrie’s Balance Sheet (January 2011 – January 2021) Answer: …
Carrie is creating a personal balance sheet. (Solved) Read More »
Question: A characteristic of a fixed asset is that it is: a. intangible b. used in the operations of a business c. held for sale in the ordinary course of the business d. a long term investment Answer: The correct option is b. used in the operations of a business Explanation: A fixed asset …
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Question: Cash flows from financing activities include all of the following except: a. payment of long-term debt. b. payment of interest. c. proceeds from stock issuance. d. cash dividends paid. Answer: The answer is option b. payment of interest. Explanation: Payment of interest is typically included in the cash flows from operating activities section of …
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Formula: The formula for calculating gross profit margin is: Gross Profit Margin = (Gross Profit / Total Revenue) x 100% where gross profit is the difference between the total revenue and the cost of goods sold. To calculate the gross profit, subtract the cost of goods sold from the total revenue: Gross Profit = Total …
Question A debit to an asset account indicates a) increase in the asset b) decrease in the asset c) A credit was made to a liability account. d) error Answer: A debit to an asset account indicates an increase in the value or amount of the asset. In accounting, assets are resources owned by a …
Introduction to net income: Definition of Net Income. Net income is the term used in business, and accounting refers to the profit that a business or a person individually generates over a specific period. Net income can be evaluated by subtracting the expenses from the total revenue in a given period of time. Net profit …
