Which company is more efficient from income statements

Assignment Help Financial Accounting
Reference no: EM132678839

Problem 1: ABC has revenues of $22 million and expenses of $15 million. XYZ has revenues of $150 million and expenses of $110 million. Can you determine which company is more efficient from these income statements?

Select an answer:

Option 1: Yes; an income statement provides all the information needed to determine how efficient one company is compared to another company.

Option 2: Yes; an income statement provides all the measures of a company's efficiency, regardless of scale.

Option 3: No; an income statement is only one measure of a company's performance, so you cannot really choose which one is more efficient.

Option 4: No; the scale of XYZ's business is so much larger than ABC's, so you will not be able to determine which company is more efficient.

Reference no: EM132678839

Questions Cloud

Patriot act and national homeland security act : Concepts developed by Madison and Jefferson. Make sure to interconnect national security laws such as the Patriot Act and the National Homeland Security Act.
How much is the stock worth for riverhawk sport authority : The company will pay no dividends. If you require 13 percent rate of return on investments in this risk class, how much is this stock worth to you?
How does accounting help decision makers : How does accounting help decision makers? by providing snapshots of a company's performance. / by turning complex factors into simple numbers
What makes the national Government : What makes the national Government of the USA so different compared to other countries?
Which company is more efficient from income statements : XYZ has revenues of $150 million and expenses of $110 million. Can you determine which company is more efficient from these income statements?
Capital Punishment : You will explore issues that relate to the death penalty. The death penalty, which remains a highly controversial topic.
Impact of employee's productivity in projects : Dissertation - A study on the impact of employee''s productivity in projects in Oman and please follow same in structure in proposal sample
Which a common definition of free cash flow is equal to : Which section of the statement of cash flows best predicts the company's ability to generate future cash flows? A common definition of Free Cash Flow is equal
Determine the amount of change : Determine the amount of change (in millions) and percent of change in net income from Year 1 to Year 2. Round to one decimal place

Reviews

Write a Review

Financial Accounting Questions & Answers

  Why are direct exchange of long-term debt for items of plant

Why are direct exchanges of long-term debt for items of property, plant, and equipment included in supplementary information for the statement of cash flows even though the exchanges do not affect cash?

  Do feel might be an ethical issue present

Do you feel there might be an ethical issue present? For the moment, assume that no laws have been broken and only focus on any possible ethical issues.

  Produce an income statement using absorption costing

Posey Manufacturing has the following cost information available for the most current year. Direct Material $6.00 per unit Direct Labor 4.00 per unit Variable man overhead 2.00 per unit Variable S&A costs 1.00 per unit Fix man overhead 80,000 Fixed S..

  What are the portfolio weights for each stock

If you demand an expected return of 14%, what are the portfolio weights for each stock? What is the portfolio's standard deviation?

  Could qualify for sale or exchange treatment

Lucinda owns 1,100 shares of Old Corporation stock at a time when Old Corporation has 2,000 shares of stock outstanding. The remaining shareholders are unrelated to Lucinda. The corporation redeems 400 shares from Lucinda. Does the transaction qualif..

  How would bond values change over time

In a rising interest rate environment, how would bond values change over time? As a bond investor, what measures would does someone take to manage rate risk?

  What would be the largest equal annual amounts

Marie Snell recently inherited some bonds, What would be the largest equal annual amounts she could withdraw for two years, beginning today?

  Metlock make to record the sale of the equipment

What entry would Metlock make to record the sale of the equipment for $37,000 cash?

  Describe the concept of reasonable assurance

Describe the concept of reasonable assurance, and how reasonable assurance is determined? Discuss the three reasons why an auditor cannot offer

  Television debate about a national health care plan

Burt is the custodian at Quaker Inn, an S corporation that has paid him bonuses over the years in the form of shares in the corporation. Burt now holds 276 shares in Quaker Inn. While listening to a television debate about a national health care plan..

  Prepare a statement of stockholders equity

Prepare a statement of stockholders' equity for the year ended December 31, 2015 - Sold and issued 1,200 shares of common stock at $20 cash per share

  Under the uniform commercial code are there party issues

Erma, a merchant, receives a brochure from Ammco regarding some merchandise that is sold in Erma’s business. Erma then sends in a purchase order ordering 25 units of merchandise (which exceeds $500.00 in value). Under the Uniform Commercial Code are ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd