For Each of the Following Indicate Whether the Item Is

question 37

Short Answer

For each of the following indicate whether the item is an operating item on the income statement (O),a nonoperating item on the income statement (N),considered other comprehensive income (C),or a balance sheet item (B).
_____ 1.Sales
_____ 2.Cash
_____ 3.Unrealized Gains
_____ 4.Gain on sale of equipment
_____ 5.Tax Expense
_____ 6.Advertising Expense
_____ 7.Loss due to fire damage
_____ 8.Interest Payable
_____ 9.Cost of Goods Sold
_____ 10.Accumulated Depreciation

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Definitions:

Investment Turnover

A measure of a company's ability to generate sales from its investments; calculated by dividing sales by average invested assets.

Profit Margin

The amount by which revenue from sales exceeds costs in a business, expressed as a percentage of total sales.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit by the initial cost of the investment.

Increase in Income

An upward movement in earnings or revenue, signaling growth or improvement in financial performance.