Explanation

Income statement report gives a review on the profitability of a business

An income statement or profit and loss account is one of the financial statements of a company

and shows the company's revenues and expenses during a particular period.

It indicates how the revenues are transformed into the net income or net profit.

Explanation

Assets can be both long-term and short-term, as well as tangible (physical) or intangible (non-physical).

On the other hand, an expense: Is a cost related to the day-to-day running of a business

Explanation

The closing process involves separate entries to close:

The correct sequencing of the entries is:

 revenues 

expenses

 income summary

expenses

Explanation

The formula to calculate profit margin ratio is:

Net income / Net sales

$24,000 / $400,000 = 6%

Formula is: 

Net profit ÷ total revenue  × 100

Explanation

Sales mix:

While the overall sales mix can affect profitability,

CVP analysis assumes that the relative proportions of different products sold (i.e., the sales mix) remain constant within a given period.

If the sales mix changes significantly, the calculations based on the initial assumption will be inaccurate

Sales Mix is not involved in CVP analysis.

Cost consist of fixed and variable cost.

Cost volume profit involves selling price, level of activity,fixed cost but does not include sale mix.

It states how profit change because of change in volume,fixed cost and selling price.

Explanation

Margin of safety is computed as Actual sales - break even sales 

The margin of safety formula is equal to current sales minus the break even point, divided by current sales.

Explanation

The province of Punjab has revised the minimum wage from PKR 25,000 to PKR 32,000 rupees per month for unskilled work.

Similarly, the minimum wages for 102 sectors/industries and various skill categories have also been raised, effective from 01 July 2023

Explanation

Capital expenditure or capital expense is the money an organization or corporate entity spends to buy, maintain, or improve its fixed assets, such as buildings, vehicles, equipment, or land

Explanation

Debtors have least profit share due to Not participating in operational risk 

Explanation