A ____ will cause Cost of Goods Sold to decrease. A. Debit  B. Credit

Q: Sales revenues are usually considered earned when Select one: a. goods have been transferred from…

A: Definition: Sales Revenue: Sales Revenue is considered as the income received from the sale of the…

Q: When a product is sold on credit, which account should be debited for the seller? A.cash…

A: Sale of a product means to sell the goods in stock to the customer. It can be sold either on cash or…

Q: Cost of goods sold is an operating expense. A.True B.False

A: Introduction:- Income statement shows company's income and expenses over a  period of time. Formula…

Q: Sales to Y Sales to others Cost of goods sold

A: A consolidated financial statement is inclusive of all the subsidiary companies where the owner has…

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: Gross profit will result if: Choose operating expenses are less than net income naging inven sales…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: When goods are shipped FOB destination and the buyer pays the freight charges, the buyer A.…

A: FOB destination means freight on board that means that the seller is responsible for the freight…

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: Assume a company receives an actual return of goods. Which of the following needs to happen? Sales…

A: The return of goods is the amount of goods that were sold to customers but were returned to…

Q: When does the cost of inventory become an expense?a. When cash is collected from the customerb. When…

A: Answer: b. When inventory is delivered to a customer

Q: account, we will ____ it. A. Debit  B. Credit

A: A contra asset account is a type of asset account with a balance that can be either negative or…

Q: Which of the following are the suppliers of goods/services whose invoices have not yet been paid? a.…

A: Accounting can be done in  both cash and accrual method

Q: Which account does a merchandiser use that a service company does not use? a. Cost of Goods Sold b.…

A:

Q: b. Debits: Accounts Receivable, Cost of Goods Sold; credits: Sales options correctly expresses the…

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

Q: Why do you add transportation in and do not deduct delivery expense when determining the cost of…

A: For a buyer, the cost of merchandise purchased is considered as a net cost incurred to buy the…

Q: Problem 10 Indicate the effects of the following errors on cost of goods sold and net income.

A: Cost of Goods sold = Opening stock + Purchases - Closing stock Net income = Sales - Cost of goods…

Q: Gross income derived from business shall be equivalent to gross sales less sales returns, discount…

A: Formula: Gross income = Net sales - cost of goods sold Deduction of cost of goods sold from Net…

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: The balance of the Cost of Goods Sold account: O a. increases when there is a sale. O b. increases…

A: When there is a sale then unit of goods would be sold more and which will increase the cost of…

Q: 1. Gross profit margin is impacted by sales and cost of goods sold changes." O A) True O B) False

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: Which of the following accounts is used in merchandising but not in service type of business?…

A: Service company deals with the intangible product whereas merchandise company buys tangible product…

Q: What account balance is not used to computer the cost of good sold? a. Sales  b. Purchased c.…

A: Calculate the cost of goods sold as follows: Cost of goods sold = Opening inventory + Purchases -…

Q: estion will save this respo I using: cost of good available for cost of goods sold, sales

A: The right answer is option d Gross sales, Sales return &allowances, sales discount

Q: Selling expenses DOES NOT include: O A. Delivering goods to customers OB. Accounting and Human…

A: The answer is given below:

Q: When goods are shipped FOB destination and the seller pays the freight charges, the buyer A.…

A: Transportation expense is a type of travel expense that refers specifically to the cost of…

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: credit terms are terms for a. when the payments for merchandise are to be made b. when inventory is…

A: Credit terms refers to the agreement made between the seller and the buyer which defines the timing…

Q: The return of defective merchandise decreases the amount of receivables from the customner. * True O…

A: Account receivable is the amount of which is owned from the customer for the credit sales made to…

Q: Which of the following is not a characteristic of FOB Destination?A. The seller pays for shipping.B.…

A: FOB (Freight on Board) Destination seems to be a shipping terminology that signifies the seller…

Q: When a company decides to sell its goods on credit, it should evaluate the effect on profit of…

A: An inflow of money either from sales or services by doing business activities is called revenue. It…

Q: Cost of Goods Sold is:   Multiple Choice   A revenue account.   An asset account.   A permanent…

A: Cost of goods sold means the cost incurred on the manufacturing or purchase of goods which has been…

Q: Which of the following is not a revenue account? a. Professional fee b. Interest income c. Cost…

A: A revenue account is classified as an equity account and shall have a credit normal balance.

Q: Gross profit is the gross sales price charged for the goods sold A.True B.False

A: Gross profit means the profit earned by selling the goods without considering the indirect expenses…

Q: Selling expenses DOES NOT include: A. Advertising expense B. Making sales C. Accounting and Human…

A: Selling expense is the expense which involves any kind of cost that is incurred through the…

Q: Gross profit is: The amount left over after cost of goods sold is subtracted from net sales. A.Net…

A: Introduction:- Income statement shows company's income and expenses over a  period of time.…

Q: the economic order quantity model the return on capital that is forgotten when it is invested in…

A: In EOQ model that is economic order quantity we consider the lot  for which there will be overall…

Q: Which is wrong?    The term creditable input VAT means input VAT deductible from output VAT.…

A: Input tax is utilised against payment of output tax liability.  Input tax will be credited for the…

Q: Determine the following: a. Net Sales b. Net Purchases c. Cost of Goods Sold d. Bad Debts Expense

A: The cost of goods sold refers to the direct costs of manufacturing the commodities supplied by a…

Q: The return of defective merchandise increases the amount to be received from the customer. True…

A: The return of defective merchandise will decreases the value of amount that is to be received from…

Q: Compute the gross margin for FIFO method and LIF0 method. FIFO: LIFO: Sales revenue Less: Cost of…

A: Sales revenue has to be calculated by multiplying units sold (785 units) to the retail rate…

Q: From the activities of the financing cycle pay salaries goods sale None of the above DOO

A: Financing cycle can be defined as the process of obtaining funds for the purpose of operating…

Q: To determine cash payments for merchandise for the statement of cash flows using the direct method,…

A: Cash flow statement shows all cash inflows and cash outflows of the business during the particular…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.