Question

In: Accounting

Which of the following groups would be considered internal users of a company’s income statement? Investors...

Which of the following groups would be considered internal users of a company’s income statement?

Investors

Creditors

Operation managers

Suppliers

After all the closing entries have been posted, the balance of the Income Summary account will be

A debit if a net income has occurred

A debit if a net loss has occurred

A credit if a net loss has occurred

Zero

Balance sheet can answer the following questions except

What is the total debt of a company?

What is the operation’s ability to pay its current debt?

How much cash was on hand at the end of the period?

How much cash has been provided for employees training expense?

Which one of the followings is not an example of operating expense in income statement?

Administrative expense

General expenses

Depreciation expenses

Loss from sales of an asset

Multiple step income statement can answer following questions except:

How much was operating expenses

How much was cost of goods sold

How much was current ratio

All of above

Expert Solution

1. Which of the following groups would be considered internal users of a company’s income statement?

Answer: Operation managers.(As they solely belong to the company, they are considered as internal users of the company)

2.After all the closing entries have been posted, the balance of the Income Summary account will be?

Answer: Zero.(After closing entries have been posted the income summary account will be transferred to Retained earnings account. )

3.Balance sheet can answer the following questions except?

Answer: How much cash has been provided for employees training expense.

4.Which one of the followings is not an example of operating expense in income statement?

Answer: Loss from sales of an asset.( this is not operating expense, it is treated as capital expenditure)

5.Multiple step income statement can answer following questions except:

Answer: How much was the current ratio.(as it contains the information of assets and liabilities)

ekkarill92 answered 3 months ago

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