How is cost of goods sold classified in the financial statements?a. As a revenueb. As an expensec. As an assetd. As a liability

Q: Income arises from the following except: A. sale of merchandise to customers B. rendering of…

A: Income refers to the amount received from day to day activities of the business such as…

Q: Which accounting technique gives the most relevant information (net cost or gross invoice price)

A: The most relevant information of accounting technique will be explained:

Q: The expense recognition principle (“matching”) controlsa. Where on the income statement expenses…

A:

Q: measurement of the value of an item appearing in the Financial Statements

A: Option 1 is wrong because the value of property, plant and equipment may appear at fair value, not…

Q: which of the following would be considered in the calculation of gross profit?  Sales and returns…

A: Gross Profit is the operating profit calculated by deducting the cost of goods sold from the revenue…

Q: Sales of products or services are referred to as  a. Assets. b. Revenues. c. Liabilities. d.…

A:

Q: Expenses on the income statement may be grouped by ?

A: Income Statement: The statement that is used for reporting a corporation's financial performance, in…

Q: Interest expense would be classified on a multiple-step income statement under the heading O…

A: Interest expense is an expenses.

Q: The functional presentation of expenses in the income statement is usually shown by grouping into…

A: An income statement is one of the mandatory financial statements prepared by the company to…

Q: The functional presentation of expenses in the income statement is usually shown by grouping into…

A: Solution 1: True, The functional presentation of expenses in the income statement is usually shown…

Q: Contrast a revenue/expense approach and an asset/liability approach to  accounting standard setting.

A: Revenue Expense approach recognizes Income statement items first Whereas, Asset/liability approach…

Q: The elements that are directly related to the measurement of profit are assets, liabilities, and…

A: The profit is recognized by an entity at the instance where the assets are increasing, or the…

Q: Expenses on the income statement may be grouped by: A . nature, but not by function.

A: There are many ways in which income statement may be grouped. An income statement by nature is the…

Q: s the income and expense account credited in the entry to record the distribution profits?

A: Solution: When profit is distributed to owner, income and expense account is debited as profit is…

Q: Calculation of Net income and Cost of Goods Sold

A: The cost of goods manufactured (COGM) is the sum of the cost of direct labor used, the cost of…

Q: Describe the format used to report the components of net income.

A: Net income: Net income is the excess amount of revenue after deducting all the expenses of a…

Q: Which are the total interest expense in the income statement?

A: Interest expenses mean costs related to financing. It is also called finance costs. From the above…

Q: Is sales listed as liability equity revenue expense or an account

A: Sales generate revenue for the business. It is main purpose of the business to make more and more…

Q: The disclosure requirements for an operating segment do not include: a. Unusual items b. Income tax…

A: Operating segment is the revenue earning segment of the company which has its own expenses and…

Q: The Sales Returns and Allowances account is reported as a

A: Sales Return refers to the process of returning goods by a customer back to the company or…

Q: What is the purpose of the income statement?

A: Financial statement: Financial statements are condensed summary of transactions communicated in the…

Q: For each of the following items, identify whether the item is considered current or noncurrent, and…

A: When the item is with the organisation for the 12 months or less than one accounting period then it…

Q: Which accounting method (net cost or gross invoice price) provides the most useful information?

A: The net cost of any product is the amount of the invoice plus any taxes and extra fees that are…

Q: When an organization considers its work-in-process, how should it be classified on a balance sheet?…

A: Work in process is a part of the inventory component of balance sheets, Inventory is categorized…

Q: how to make an income statement.

A: A statement which is prepared to know how well the company is performing and to ascertain the…

Q: Why should inventories be included in (a) a statement offinancial position and (b) the computation…

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Q: he entry to record the sale of goods on account uses a perpetual system and comprises a

A: Here is the Answer:

Q: Distinguish between Income and Expenditure Account and Receiptand Payment Account.

A: Difference between income and expenditure account and receipt and payment account:

Q: When preparing an income statement with separate categories for selling expenses and then general…

A: The expenses reported on the income statement that includes all the direct and indirect expenses…

Q: What is meant by the terms elements and items as theyrelate to the income statement? Why might items…

A:

Q: The income statement line gross profit will appear on which income statement format? Select one: a.…

A: 1. Receipt and Payment A/c: Receipt and payment A/c is prepared by non profit organization, Which…

Q: Identify the natural balance of each of the following accounts (DR = Debit, CR = Credit) - Inventory…

A: As per the Golden rules of accounting:     • For Real Accounts, the rule follows as: debit what…

Q: revenues and gains (other revenue) on the Statement of Operations?

A: The other revenue means the revenue received from non-operating activities of the entity.

Q: What is the role of accountant in setting the price of the goods or services?

A: Price of product shows the amount of product that the seller is willing to offer to the buyer.

Q: How to find the net income? How to find the revenue expense?

A: Net Income Net Income is refer as the net profit or the profitability of the company. Net Income is…

Q: Explain Accrual Accounting as it relates to revenue and expenses.

A: Accounting refers to recording, posting, analysing, summarising and communicating the financial…

Q: Demonstration of the relationship between GAAP and accounting practices (e.g., matehing prineiple…

A: The process by which financial transactions of the business are recorded and communicated with the…

Q: Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Cost of…

A: Definition: Financial Accounting: It refers to the process of recording the financial transactions…

Q: When an entity prepares financial statements in a current cost basis, how is the cost of goods sold…

A: Financial statement: It is the representation of financial data of the company. It shows the…

Q: What is a consignment arrangement? Explain the accounting treatment of goods held on consignment.

A: Goods on Consignment: When the goods are transferred by one company to another company for selling…

Q: Which of the following best describes the activities of the accounting function? a. inventory…

A:

Q: Under AASB101 Presentation of Financial Statements, which of the following items, if it exists, must…

A: Solution: Revenue, Share of profit of associates and cost of sales are temporary accounts that are…