What types of liabilities, assets, and equity are not assumed to vary directly with sales

Q: Income arises from the following except: A. sale of merchandise to customers B. rendering of…

A: Income refers to the amount received from day to day activities of the business such as…

Q: Which accounting technique gives the most relevant information (net cost or gross invoice price)

A: The most relevant information of accounting technique will be explained:

Q: What is the adjusted balance of Sales and Invenfories?

A: Adjusted Balance of Sales: $49,25,600 Adjusted Balance of Inventories: $3,17,400

Q: Which of the following is a permanent account? Dividend Declared Allowance for Doubtful ACcount…

A: Permanent accounts, which are also called real accounts, are company accounts whose balances are…

Q: The revenue recognition principle requires retailers to recognise sales revenue when it is earned…

A: The accrual basis accounting system is considered a feature of the accrual base accounting system…

Q: A sales discount is added in calculating net sales

A: The net sales are reported in the income statement of the company. The expenses would be deducted…

Q: Explain the accounting for sales with right of return.

A: Definition: Accounting for sales with a right of return: Accounting for sales with the right of…

Q: In the income statement, which is not considered a contra-revenue account? -Freight-out -Sales…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Which of the following is NOT a financial transaction? a. purchase of products b. cash receipts c.…

A:

Q: Ethics within inventory estimates and other creative accounting methods. Channel stuffing, swaps,…

A: Ethics implies the arrangement of rules that the association ought to follow. While in business,…

Q: Explain the consolidation adjustment needed in group retained earnings and group inventory account…

A: Consolidation means combination of parent company and subsidiary company for the purpose of…

Q: Gross income derived from business shall be equivalent to gross sales less sales returns, discount…

A: Sales return: when the sold item being returned by the customer to the seller. It is known as sales…

Q: When does sales revenue is recognized? When does sales revenue is recorded? Does recognize and…

A: The sales revenue is the amount of total sales made during the period.

Q: Is sales listed as liability equity revenue expense or an account

A: Sales generate revenue for the business. It is main purpose of the business to make more and more…

Q: Which of the following is not an element of the financial statements?A. future potential sales price…

A: Financial statements seem to be reports generated by a corporation's management to demonstrate the…

Q: Revenue recognition in the Xerox case called for determining the stand-alone selling price for each…

A: Revenue recognition: The revenue recognition principle is an accounting principle that specifies the…

Q: Gross income derived from business shall be equivalent to gross sales less sales returns, discount…

A: Formula: Gross income = Net sales - cost of goods sold Deduction of cost of goods sold from Net…

Q: Which of the following is not a component of Net Sales?a. Sales Returns and Allowancesb. Sales…

A: Sales revenue: It refers to the money earned by the business from selling its services and products…

Q: Why are assets revalued and liabilities reassessed at the time of change in profit sharing ratio?

A: Meaning of Revaluation of AssetsA revaluation of assets is an action that may be required to…

Q: Under what conditions should a company disclose the amount of sales from a major customer?

A: Sales: A sale refers to a transaction that take place between two parties where a buyer receives…

Q: How does EVA differ from accounting profit?

A: Introduction: Economic value added is the sum of net earnings over capital costs. EVA corresponds to…

Q: Requirement a. What are the accounting requirements for a correct sales​ cutoff?     A. A shipment…

A: Revenue shall be recognition according to accounting standards. Following is the condition to…

Q: What does a “downstream” sale of inventory refer to and when is the profit recognized?

A: Downstream sale of inventory: When a parent company transfer goods to any of its subsidiaries, it is…

Q: What is Target’s policy with respect to accounting for merchandise returns?

A: Financial Statements: Financial statements are a group or reports that present the financial…

Q: le of inventory and an downstream sale? Why is it important to know the direction of sale when…

A: Upstream and Downstream sales are normally linked with inter-company sales. Upstream is a subsidiary…

Q: What is difference in conventional income statement and a commercial bank’s income statement?…

A: Financial statements are essentially prepared in order to understand the performance of a company.…

Q: Which of the following accounts does not belong in the purchases and disbursement cycle?

A: A disbursement is the paying out of funds, whether to make a purchase or other transaction.…

Q: difference between the cash basis and accrual basis of accounting

A: In cash basis of accounting, receipts and payments are treated as income and expenses respectively.…

Q: Why is continuity assumption,separate entity assumption and cost principle so important for…

A: Continuity means the assumption and principles will be continued to be followed every year so that…

Q: .Calculate the trends in the sales and cost of sales and comment on the information disclosed by…

A: Trend analysis is the analysis which is used by the company in order to anticipate and made an…

Q: Which of the following ratios (from a potential customer) would be of primary importance to a seller…

A: Formula: Earnings per share = ( Net income - Preferred dividends ) / number of outstanding shares

Q: What is the amount of sales under cash basis?  What is the amount of purchases under cash basis?…

A: Solution Note : as per the Q&A guideline we are required to answer the first three subparts only…

Q: How do gross profits, operating income, and net income differ

A: In finance when making or analyzing an income statement we look into different types of income or…

Q: What is Sales Mix and why is it used in retail operations?

A: Sales mix is the proportion of each product sold by a company as a percentage of its total sales.…

Q: Which of the following items in the balance sheet does NOT have a constant relationship with sales…

A: In the percentage of sales method, we forecast line items for the future by using the historical %…

Q: percent-of-sales method to preparing a pro forma income statement

A: Pro forma is a method that is used for calculating financial results using certain projections or…

Q: Briefly explain the accounting treatment for sales returns.

A:

Q: Why are contra-revenue accounts used rather than directlydeducting from the Sales Revenue account?

A: Sales revenue: The amount of price of merchandise sold during a certain period is referred to as…

Q: How is inventory management a balancing act between stock- out costs and holding costs?

A: Inventory management is the process of managing and controlling the inventory levels in the…

Q: Sales taxes collected by a retailer are reported as revenues. current liabilities. expenses.…

A: Introduction: A sales tax is a consumption tax imposed by the government on the selling of goods and…

Q: Selling Expenses Interest Revenue Net Sales Revenue Cost of Goods Sold Administrative Expenses

A: Net sales revenue = $113,500 Cost of goods sold = $85,000 Gross profit = Net sales revenue - Cost of…

Q: How to calculate net sales revenue and net purchases

A: The income statement is one of the financial statements of the business which is prepared to know…

Q: When are profits realized in relation to inventory transfer within the group

A: There is an unrealized gain in the consolidated financial statements, if the inventory transfers in…

Q: How to get or compute the Net sales?

A: Net sales can be calculated by deducting sales returns and sales discounts.