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Remove Brand Logo from the 12 Month Income Statement

Remove Brand Logo from the 12 Month Income Statement

Aug 6th, 2022

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How to Remove Brand Logo from the 12 Month Income Statement

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On December 1, 2010, a company paid a $23,400 premium for a 36-month insurance policy. For the cash basis of accounting, expenses are recorded when cash is paid. Therefore, on the balance sheet, prepaid insurance would be reported as zero, and the entire $23,400 would be recognized as an insurance expense on the income statement for 2010, the payment year. There would be no asset account or additional expense in the following years since no further cash flow occurs. The summary emphasizes the treatment of insurance premiums under the cash basis accounting method, highlighting the immediate expense recognition and lack of prepaid assets.

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Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

Which item would not be found on an income statement?

Answer and Explanation: (b) Dividends would not be found on an income statement. An income statement shows all the revenues and expenses of a company for a period of time, typically for a year.

What is the discontinued section on an income statement?

Discontinued operations is an accounting term for parts of a firms operations that have been divested or shut down. They are reported on the income statement as a separate entry from continuing operations.

What types of information must be disclosed in the financial statements?

IAS-5 lists the items to be disclosed, including taxes, depreciation, interest income and expense, unusual charges and credits, and net profit or loss.

What a company shows on their income statement as the bottom line figure?

The bottom line is a companys net income, or the bottom figure on a companys income statement. More specifically, the bottom line is a companys income after all expenses have been deducted from revenues. These expenses include interest charges paid on loans, general and administrative costs, and income taxes.

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