The statement below is likely from which of the following type of business and form of organisation:Income StatementFor the year ended 30th JuneFees revenue $189 000Expenses:Supplies expenseSelling expensesFinancing expensesGeneral & administrative expensesTotal expensesNet profit before taxIncome tax expenseNet profit after tax 98 0008000175012 000 119 75069 25022 00047 250Question 3Answera.a service companyb.a merchandising sole-proprietorshipc.a merchandising partnershipd.a merchandising companye.a service sole-proprietorship
Question
The statement below is likely from which of the following type of business and form of organisation:Income StatementFor the year ended 30th JuneFees revenue $189 000Expenses:Supplies expenseSelling expensesFinancing expensesGeneral & administrative expensesTotal expensesNet profit before taxIncome tax expenseNet profit after tax 98 0008000175012 000 119 75069 25022 00047 250Question 3Answera.a service companyb.a merchandising sole-proprietorshipc.a merchandising partnershipd.a merchandising companye.a service sole-proprietorship
Solution
The income statement provided seems to be from a service company. This is because the revenue is generated from "Fees" which is typical of a service company such as a law firm, consulting firm, etc. The expenses listed are also common in service companies. However, the form of organization (whether it's a sole proprietorship, partnership, or corporation) cannot be determined from the income statement alone. Therefore, the answer is (a) a service company.
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The statement below is likely from which of the following type of business and form of organisation:Income StatementFor the year ended 30th JuneFees revenue $189 000Expenses:Supplies expenseSelling expensesFinancing expensesGeneral & administrative expensesTotal expensesNet profit before taxIncome tax expenseNet profit after tax 98 0008000175012 000 119 75069 25022 00047 250Question 3Answera.a service companyb.a merchandising sole-proprietorshipc.a merchandising partnershipd.a merchandising companye.a service sole-proprietorship
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