Costs incurred to earn revenue are referred to as _____

Q: Under an accrual accounting system, an expense is recognized when O A. a good or service is used or…

A: Accrual accounting system: Accrual accounting system means recording income and expense when…

Q: Distinguish between costs included in inventories and costs recognized as expenses in theperiod in…

A: Product cost is the cost incurred for manufacturing a product i.e.; it is the total amount of direct…

Q: The revenue recognition principle dictates that revenue be recognized in the accounting period…

A: The revenuerve recognition principle states that every business organization should recognize the…

Q: In what instances do you use unearned revenues and prepaid expenses?

A: Assets are the items owned by the firm or individual. It is calculated by summing up all the items…

Q: Define the term accrued expense.

A:

Q: Which of the following is not an example of an operating expense? Select one: a. Salaries Expense…

A: Option d is the correct answer.

Q: What is an accrued expense? Provide an example.

A: Accrued expense: This is the expense incurred but not yet paid. It is treated as liability until the…

Q: calssify the following expenses between selling expenses and general and administrative expenses.…

A: Indirect expenses can be classified into three part:  (1) Factory expenses (2) Office and…

Q: The accrued balance in a revenue account represents an amount which is:

A: Solution: The accrued balance in a revenue account represents an amount which is earned but not…

Q: what is the difference betwwen classifying an expense by nature or function?

A: The costs that are incurred to earn revenues in the process of operating activities of the business…

Q: WHAT IS THE TOTAL GENERAL AND ADMINISTRAVE EXPENSES?

A: The administration expenses are related to funciton of business but not directly or indirectly…

Q: The function of expense method reports gross margin and income from operations. True False

A: In function of expense method, the expenses are allocated based on the activity from which such…

Q: How can the amounts shown on the- nancial statements be called historical ?cost amounts

A: Answer A. The correct answer is option (C) When an item was originally obtained whether that…

Q: Explain when it is appropriate to recognize revenue at a single point in time.

A: Revenue refers to the amount of the earning which an organization earns for performing the services.…

Q: Explain the difference between recognizing revenue based on proportion of costs method and…

A: Both are the type of common revenue recognition methods. The most common methods for recognising…

Q: The net income or net loss reported on the income statement must be the same as the net income or…

A: A Worksheet is a multi-column spreadsheet that contains the ending balances of all general ledger…

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

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

Q: What is the difference between direct and indirect costs? Explain.

A: Cost is the expense incurred for producing or manufacturing a product. It includes raw material,…

Q: What is supposed to be credited in utilities expense

A: Solution Concept When an expense has been incurred but not paid ,such expense needs to be recorded…

Q: Define Expense recognition.

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Difference between deferral of expenses/revenue and accrued expenses/ revenue?

A: The business adjust the profits of the business for the current year considering deferred and…

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

A: Revenues are the amount received from the sale of goods and services.  Expenses are the cost…

Q: 1. Record the preceding transactions in MSK's books assuming it recognizes revenue over time and…

A: Given: Estimation of factory building = $ 525,000

Q: To capitalize an expenditure is to: Multiple Choice Debit an expense account. Credit an expense…

A: Explanation: Capitalization of expense: Capitalization of expense refers to adding the amount…

Q: Net income or net loss is the difference between total revenue and total expenses over a specific…

A: Net income is the income earned by a business during a accounting period. Net income or loss is…

Q: bject:cost account

A: Cost of Production report states the cost per Equivalent unit produced and transferred and cost of…

Q: What type of account is Unearned Revenue?a. Assetb. Liabilityc. Revenued. Expense

A: Unearned revenue: Unearned revenue is also called as prepaid revenue.

Q: admiHII examples of what type of expense? a. selling expense b. miscellaneous expense c.…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Expense recognition is implemented by one of four different approaches, depending on the nature of…

A:

Q: Which of the following is not considered an operating expense

A: Operating expenses are those expenses incurred for normal day-to-day business activities and…

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

A: Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by…

Q: Why is Profit and Loss Adjustment Account prepared? Explain.

A: There are following two reasons of why Profit and loss adjustment account is prepared;-  1.   To…

Q: The cost that is incurred in the process of generating the income will be called as

A: The cost that is incurred in the process of generating the income will be called as expense.

Q: The income statement in which the total of all expenses is deducted from the total of all revenues…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Deferred expenses should be reported as O Expenses on the income statement O Income on the income…

A: Deferred expenses : It refers to the cost incurred but this is recorded as expenses on a future…

Q: Cost Accounting don’t disclosure the information? True Flase

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: An accrued expense is an expense that :

A: The expenses to be adjusted in income statement are prepaid expenses and outstanding or accrued…

Q: Describe the accounting and amortization of prior service costs.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

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

A:

Q: Give example of personal assets

A: An asset  is a resource owened by individual or business that provides…

Q: What are (a) pass-through expenses, (b) recoverable expenses, and (c) common area expenses? Give…

A: a) Pass through expense: This is an expense which the customer pays directly to a third party or…

Q: According to our authors, define and explain “expense.” Provide examples.

A: An expense is referred to as the cost of operations that is incurred by a business to generate…

Q: Each period, the Cost of Goods Available for Sale is allocated betweena. Assets and Liabilities.b.…

A:

Q: What is a fee income

A: Fee Income There are different ways an organisation can make the sources of income like sales…

Q: Differentiate using an example company’s primary revenue and secondary revenue, company’s primary…

A: Revenue refers to the funds generated by an entity through its direct or indirect business…

Q: What is the liability created by receiving revenue in advance called (before it is actually earned)?…

A: Revenue receipts in     Advance is shown as unearned revenue.

Q: Distinguish between costs that are capitalized and costs that are expensed in the period inwhich…

A: A business cost includes all costs such as capitalized cost, the variable cost, direct or indirect…

Q: income be affected

A: Operating income is the amount of revenue realized from the operations of the business, after…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.