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: 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: n accounting for by-products, when the by-products are sold for more than the estimated sales value,…

A: There are two options available to the entity. The entity can choose either of the following options…

Q: Compare and contrast the differences and similarities between Cost of Goods Sold and Net Profit.

A: Cost of goods sold (COGS) represents the direct cost of producing the goods. These are the direct…

Q: Which of the following is classified as general and administrative expenses? a. Salaries of admin…

A: Option d is correct.

Q: Which of the following is subtracted from Gross profit to arrive at Operating income

A: Introduction:- Operating income can be calculated by deducting the cost of goods sold and operating…

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: 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: Costs that are treated as assets until the product is sold are called A. Product cost B. Period cost…

A: Period cost is costs incurred by organisation which are not related to production of product. These…

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: Gross margin is included on the income statement under which format(s)? A) B) C) D) Contribution…

A: Gross Margin is included on the income statement under traditional approach.  Gross Margin = Sales -…

Q: In a cost-divided income statement, changes in purchased goods (merchandise) must be reported under…

A: Following is the answer to the given question

Q: The following statements are correct, except:

A: Profit or loss is a statement which shows how much net profit has been earned by the company or…

Q: Current Attempt in Progress In its income statement for the year ended December 31, 2025, Carla…

A: Income statement is one of the financial statements that shows profitability, total revenue and…

Q: : The difference between total sales revenue and total cost of goods sold is the   Group of answer…

A: Trade margin = Total sales revenue - Total cost of goods sold

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: Which of the following statement is False for a Simple-Step Income Statement? a. Net Profit can be…

A: Single Step Income Statement is a method of expressing profit and loss statement that lists all…

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: 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: net income

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

Q: 2. When Inventory is sold, how is the cost of goods sold account affected? Briefly explain

A: Inventory is an asset which is recorded in the balance sheet . It is the merchandise owned by 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: Gross profit minus total operating expenses is called ____________. Group of answer choices income…

A: Gross Profit: After deducting all of the expenditures that are associated with the production and…

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: Explain what is meant by the cost rule or net realizable value, whichever is less, and how it is…

A: As per IAS -02 inventory should be measured on cost or Net realizable value whichever is lower.…

Q: The charges of putting products into a saleable condition ought to be charged to A. Balance Sheet B.…

A: The question is asking where the costs associated with preparing products for sale should be…

Q: Gross profit will result if: O Sales revenues are greater than operating expenses. Operating…

A: Gross profit is the excess of the sales revenue over the cost of goods sold

Q: What type of expenses are deducted as a part of gross profit? A)"Cost of goods sold" only…

A: Gross profit can be calculated by deducting cost of goods sold from the net sales.

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: Payable turnover is a measure of cost ot goods sold and accounts payable. Select one: O True False

A: Payable turnover ratio is calculated as follows -  cost of goods sold / average accounts payable

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…

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.