Both, distribution costs and administrative expenses are part of the cost of goods sold in the statement of income.   Question 13 options:   1) False   2) True

Q: In the financial accounting for inventory, what is a cost flow assumption?

A: Accounting for inventories is a subset of accounting that deals with the value of inventoried assets…

Q: Ahmed Co. decides to establieh a petty cash fund with a beginning balane OA OB. Debit Cash BD 500…

A: Accounting is a medium of communication, like any language that we use. For example, two people can…

Q: Compute(a)the cost of goods purchased and (b) the cost of goods sold

A: Cost of Goods Purchased is the net cost of merchandise acquired. It is that situation when business…

Q: Which of the following statements is/are FALSE:

A: 1.Prudence convention:  It is also known as Conservatism Principle . In this anticipated revenues…

Q: 12.Gross profit will result if:   a. Sales revenue are greater than cost of goods sold. b. Operating…

A: Sales revenue is the amount received for the sale of goods (inventory) Cost of goods sold is cost…

Q: Product costs are ordinarily found in the traditional Income Statement's Operating Expenses whereas…

A: Product costs are those costs which are incurred on specific products like material cost, labour…

Q: 31. Gross Sales - Sales Discount - Sales Returns and Allowances is equal to?

A: Gross Sales : Grand total of sales transaction during a particular time period.  Net Sales : Net…

Q: Vhlch öf the föllówing statements Is true? Multiple Choice Product costs and varlable costs are…

A: Fixed cost can also be product cost like fixed manufacturing overhead. Product cost is the main…

Q: 4. (A) Which of the following transactions would cause net income for the period to be understated…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Essay question Explain the application of AVERAGE cost flow assumption in determining .cost of goods…

A: Average cost flow assumption is a calculation companies use to assign costs to inventory goods, cost…

Q: Problem 6-02A a, b1-b2, c (Part Level Submission) (Video) Glee Distribution markets CDs of the…

A: Under periodic inventory system, the cost of inventory can be valued using LIFO, FIFO and average…

Q: Explain the accounting for sales with right of return.

A: Definition: Accounting for sales with a right of return: Accounting for sales with the right of…

Q: On July 10, 2025, Wildhorse Music sold CDs to retailers on account and recorded sales revenue of…

A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…

Q: 7. Discuss the difference between production items, expense items, and capital items.

A: In order to understand the difference between the three we need to understand the nature of these…

Q: Which income statement account(s) would be affected by a policy choice at the same time as the…

A: Inventory is directly related to the cost of goods sold. To change the policy of valuation of…

Q: Name the accounting principle that requires inventories to be reported at sales price less…

A: Conservatism Principle This is the concept that you should record expenses and liabilities as soon…

Q: a. the cost of goods on hand at the beginning and the cost of goods purchased during the period b.…

A: >Cost of Goods available for sale is includes:--Cost of goods manufactured as adjusted by…

Q: Which of these expressions is correct? a. Gross profit less expenses = profit. b. Sales less cost of…

A: Gross Profit is the operating profit

Q: 6. Which of the following must be part of the cost of inventory? a. Transportation cost paid for the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Required: 1. Compute cost of goods sold for each of the two items separately using the FIFO and LIFO…

A: Introduction: FIFO stands for First In First out. Under this standard inventory method, oldest…

Q: 17. Cost of goods sold: A. Is another term for merchandise sales. B. Is the term used for the cost…

A: Cost of goods sold is the total cost of units sold during the period. It is the difference between…

Q: Revenue from sales of the by-product can be listed in the income statement as: a. additional cost…

A: Revenue from sale of by product is shown in the income statement as an additional sales revenue…

Q: net income

A: Net income is stated in the income statement of the company that is calculated by deducting the…

Q: What is the preferred order of reconciliation? cost, sales, income O income, cost, sales sales,…

A: Income is defines as total costs of the project deducted from total sales from the project.

Q: Period costs are O Always considered part of inventory Always recorded as an expense O Expensed only…

A: Cost refers to the amount which is incurred on the making of the goods and to run the daily business…

Q: Requirement 3. Calculate the cost of goods sold for each company Begin by calculating the cost of…

A: Cost of merchandise sold can be defined as the direct cost of producing the products or services. It…

Q: The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following…

A: Gross income is direct income of a business generated from direct revenues of the company. It is an…

Q: According to the historical cost system, what is the objective of accounting and the role of profit?…

A: Historical cost system believes that the asset needs to be recognised on the basis of cost at the…

Q: cost of goods sold

A: Option a - Direct wages are part of cost of goods sold Option b - Purchases are included while…

Q: s the cost of goods sold from the income statement part include the cost of goods in inventory?

A: Cost of Goods Sold=Beginning Inventory+Purchases for the period-Ending Inventory

Q: The difference between Net sales and Cost of goods sold is referred as _____________.

A: Net Sales means Sales revenue less any sales return, discount and allowances whereas cost of Goods…

Q: Describe differences between gross profit, EBIT, and net profit. Also, what is the possibility of…

A: Gross profit, EBIT and Net profit are all important financial line items that can be found in a…

Q: 1. Explain the effect of each inventory cost flow method on the company's net income 2. Recommed one…

A: There are primarily four type of inventory cost method- 1. First in first out method2. Last in first…

Q: The application of the lower of cost or market rule to inventory valuation is an example of a. the…

A: The valuation of inventory is done at lower of cost or net realisable value as per relevant…

Q: In accounting for consignment sales, sales revenue and the related cost of goods sold should be…

A: Introduction:- Consignment arise when goods are sent by their owner to an agent who undertakes to…

Q: Which inventory cost flow assumption does IFRS not allow? a. Specific identification. b. FIFO. c.…

A: Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: A CVP income statement shows contribution margin and gross profit. True False

A: The CVP Income Statement or an Cost- Volume- Profit Income Statement is almost similar to an…

Basic Accounting Terms

Accounting terms are accounting terminology, accounting jargon, accounting acronyms, and accounting vocabulary that are commonly used to understand accounting fundamentals. It would be difficult for anyone to read, understand, and interpret the company's financial statements if they did not understand and know the meaning of the basic accounting terms.