termed连变明所战养四因a.accounts payable连变明所战养四因b.prepaid expense连变明所战养四因c.unearned revenue连变明所战养四因d.accounts receivable连变明所战养四因4.Merchandise inventory at the end of the year is overstated.Which of the following statements correctly states the effect of the ...
EARNINGS, REVENUE ARE UP FOR PRIMEJane Fitz Simon, Globe Staff
Net income — or net profit — is determined by subtracting the company’s expenses from its total revenue. Did You Know? Businesses use the earnings before interest, taxes, depreciation and amortization (EBITDA) formula to project a company's long-term profitability. Calculating your EBITDA is...
After deducting the costs, the company has a net profit of $1.1 million. If the company decides to distribute $600,000 as dividends, it leaves $500,000 in retained earnings – which the business can reinvest into further expansion or enhancing its facilities. Advantages of retained earnings ...
The third unfortunate consequence of the corporation income tax is that the same earnings are taxed twice, once when they are earned and once when they are distributed. This double taxation causes the original profit margin to carry a tremendous burden of tax, making it difficult to justify ...
Direct tax and indirect tax are two separate types of taxes. With direct tax, like income tax, individuals and organizations pay the government directly based on their earnings or revenue. Indirect taxes are levied on the sales of goods and services and paid for by the customer through the bu...
periods to get a sense of any trend. Companies sometimes can cut costs for a particular quarter thus inflating their earnings temporarily. Investors must monitor costs to see if they're increasing or decreasing over time while also comparing those results to the performance of revenue and profit....
Calculate net profit by subtracting all company expenses including cost of goods sold, operating expenses and income taxes from total revenue. The Importance of Profits Profit is very important, because this is what you funnel back into the business as retained earnings to pay for business ...
What is the Relationship Between Revenue and Profit? What is the Difference Between Earnings and Profit? What is a Profit Center? How do I Make a Profit? What is a Gross Profit Rate? Discussion Comments SmartCapitalMind, in your inbox ...
Price-to-earnings ratio under 20 times earnings. Dividend payout ratio of 50% or lower (except for utilities). Five-year average dividend growth rate of 5% or more. He will sell a stock if a company cuts its dividend or if it has three consecutive years of falling earnings...