Why is the figure for operating profit important? (a) This is the figure used for calculating federal

Question:

Why is the figure for operating profit important?

(a) This is the figure used for calculating federal income tax expense.

(b) The figure for operating profit provides a basis for assessing the success of a company apart from its financing and investment activities and separate from its tax status.

(c) The operating profit figure includes all operating revenues and expenses as well as interest and taxes related to operations.

(d) The figure for operating profit provides a basis for assessing the wealth of a firm.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Understanding Financial Statements

ISBN: 9780138114404

12th Edition

Authors: Lyn Fraser, Aileen Ormiston

See More Books

Question Posted: Apr 03, 2024 07:00 AM

See More Questions

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
Utilizing resoorces, complete a risk audit of Bank of Americas project to acquire Merrill Lynch. Ensure you address all 10 critical success factors. From the evidence of your audit, would you advise...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Explain why a production quota is inefficient.
Emporia Shoe Shop had goods available for sale in 2019 with a retail price of $120,000. The cost of these goods was $84,000. If sales during the period were $80,000, what is the estimated cost of...
Explain Table 2.2 in a 1?2 page report with examples, e.g., the analog (with L = 1 H) of a mass?spring system of mass 5 kg, damping constant 10 kg/sec, spring constant 60 kg/sec 2 , and driving force...
____7. If you type a name of an account, ____________ completes the field automatically. a. Drill down. b. Double-clicking. c. Find. d. Auto fill. e. All of the above.
The time between calls to a corporate office is exponentially distributed with a mean of 10 minutes. (a) What is the probability that there are more than three calls in one-half hour? (b) What is the...
can you please answer the following questions in order and make it simple X i More Info December requi 5 20 Driven sold 14 go-karts on account. The selling price of each go-kart was $1,400; the cost...
Which of the following items should be recorded as other comprehensive income? (a) Foreign currency translation effects. (b) Extraordinary gains and losses. (c) Realized gains and losses. (d) All of...
Why should the expenditures for repairs and maintenance correspond to the level of investment in capital equipment and to the age and condition of that equipment? (a) Repairs and maintenance expense...
The CPI bias arises from all of the following items except ________. A. the introduction of new goods and services B. the improved quality of goods C. the goods and services bought by poor people D....
Jasmine Minoza, the chief information officer of a Canada- based designer of video games, Adventure Gaming, Inc. (AGI), is considering outsourcing her companys software development activities to...
The input to the circuit of Fig. 5-23 with RC = 1 is v 1 = sin t. Write KCL at node B and solve for v 2 . +1 VI R B A + C D 3+ 10-41. 12
Draw an angle of 120. First draw a straight line about 6cm long. Place the protractor on the line so that the central cross hair is on one of the end points of the line. Make sure the line lines up...
Draw a seriesparallel switch circuit that implements the function f(x, y, z) = 1 if inputs xyz represent either 1 or a prime number in binary (xyz = 001, 010, 011, 101, 111).
A parallel-plate capacitor connected to a battery maintaining a potential difference $V$ across the capacitor initially stores electric potential energy $U_{1}^{E}$. If the plate area is doubled...
What is the difference between common and special causes of variation?
Aztec Furnishings makes hand-crafted furniture for sale in its retail stores. The furniture maker has recently installed a new assembly process, including a new sander and polisher. With this new...
Flexible manufacturing places new demands on the management accounting information system and how performance is evaluated. In response, a company should a. institute practices that reduce switching...
Revenue and expense items and components of other comprehensive income can be reported in the statement of shareholders' equity using: U.S. GAAP. IFRS. Both U.S. GAAP and IFRS. Neither U.S. GAAP nor...
Kirk and Spock formed the Enterprise Company in 2010 as equal owners. Kirk contributed land held an investment ($50,000 basis; $100,000 FMV), and Spock contributed $100,000 cash. The land was used in...

Why is the figure for operating profit important? (a) This is the figure used for calculating federal

Question:

Step by Step Answer:

Understanding Financial Statements

Students also viewed these Business questions