Question : 117.Which of the following not a subtotal or bottom-line figure? a. Cost : 1244344

117.Which of the following is not a subtotal or bottom-line figure?

 

a.

Cost of goods sold

b.

Gross margin

c.

Net income

d.

Income from operations

 

 

 

118.Earnings per share is found on which financial statement?

 

a.

Statement of retained earnings

b.

Income statement

c.

Balance sheet

d.

Statement of cash flows

 

 

 

119.In which category would office salaries expense be included?

 

a.

Cost of goods sold

b.

General and administrative expenses

c.

Net sales

d.

Selling expenses

 

 

 

120.Which of the following is not considered a selling expense?

 

a.

Freight-out expense

b.

Cost of goods sold

c.

Insurance on the sales office

d.

Sales salaries expense

 

 

 

121.Interest paid on debt would be entered on the multistep income statement in the category called

 

a.

operating expenses.

b.

other revenues and expenses.

c.

selling expenses.

d.

general and administrative expenses.

 

 

 

122.An advantage of the single-step income statement over the multistep form is

 

a.

its comprehensiveness.

b.

its simplicity.

c.

the amount of information it provides.

d.

its use in computing ratios.

 

 

 

123.Use this information to answer the following question.

 

Alcorn & Zeto Company

Income Statement

For the Year Ended December 31, 20×7

Revenues

 

Net sales

$100,000

 

 

Dividend income

     8,750

 

Total revenues

 

$108,750

Costs and expenses

 

Costs of goods sold

$ 25,250

 

 

Selling expenses

10,000

 

 

General and administrative expenses

13,750

 

 

Interest expense

     6,250

 

Total costs and expenses

 

   55,250

Income before income taxes

 

$ 53,500

Income taxes

 

   19,500

Net income

 

$ 34,000

 

If the income statement were prepared in a multistep form, gross margin from sales would be

 

a.

$83,500.

b.

$74,750.

c.

$89,750.

d.

$79,750.

 

 

 

124.Use this information to answer the following question.

 

Alcorn & Zeto Company

Income Statement

For the Year Ended December 31, 20×7

Revenues

 

Net sales

$97,500

 

 

Dividend income

     8,750

 

Total revenues

 

$106,250

Costs and expenses

 

Costs of goods sold

$ 30,000

 

 

Selling expenses

10,000

 

 

General and administrative expenses

13,750

 

 

Interest expense

     6,250

 

Total costs and expenses

 

   60,000

Income before income taxes

 

$ 46,250

Income taxes

 

   19,500

Net income

 

$ 26,750

 

If the income statement were prepared in a multistep form, income from operations would be

 

a.

$46,250.

b.

$36,250.

c.

$37,500.

d.

$97,500.

 

 

 

125.Use this information to answer the following question.

 

Alcorn & Zeto Company

Income Statement

For the Year Ended December 31, 20×7

Revenues

 

Net sales

$100,000

 

 

Dividend income

     9,000

 

Total revenues

 

$109,000

Costs and expenses

 

Costs of goods sold

$ 30,000

 

 

Selling expenses

10,000

 

 

General and administrative expenses

13,750

 

 

Interest expense

     6,250

 

Total costs and expenses

 

   60,000

Income before income taxes

 

$ 49,000

Income taxes

 

   19,500

Net income

 

$ 29,500

 

If the income statement were prepared in a multistep form, other revenues and expenses would total

 

a.

$9,000.

b.

$6,250.

c.

$15,250.

d.

$2,750.

 

 

 

126.Use this information to answer the following question.

 

 

If the income statement were prepared in a multistep form, income before income taxes would be

 

a.

$48,750.

b.

$33,750.

c.

$52,500.

d.

$40,000.

 

 

 

 

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