Indicate the proper accounting for the following items.(a) Organization costs. (c) Operating losses.(b) Advertising costs.
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Indicate the proper accounting for the following items.
(a) Organization costs. (c) Operating losses.
(b) Advertising costs.
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- If a company capitalizes costs that should be expensed, how is its income statement for the current period impacted? A. Assets understated B. Net Income understated C. Expenses understated D. Revenues understatedTypical accounting tasks include all of the following tasks except ________. A. auditing B. recording and tracking costs C. tax compliance and planning D. consulting E. purchasing direct materialsWhich of the following represents the components of the income statement for a service business Sales Revenue - Cost of Goods Sold = gross profit Service Revenue - Operating Expenses = operating income Sales Revenue - Cost of Goods Manufactured = gross profit Service Revenue - Cost of Goods Purchased = gross profit
- Each of the following situations relates to a different company. A. For each of these independent situations, find the missing amounts. B. How would stakeholders view the financial performance of each company? Explain.Give an example of situation to show how a business adheres to each of the following accounting principles: Historical cost Revenue recognitionIdentify which one of the following formula is used to calculate the net income of the service companies in an accounting period? a.Net Purchases – Cost of goods sold b.Net Sales – Cost of goods sold c.Services Revenue – Operational and Administrative Expenses d.Operational and Administrative Expenses – Service Revenue
- Under the historical cost accounting model the financial statement that is regarded as the most important is: Select one: a. Balance sheet b. Cash flow statement c. Income statement d. They are all equally importantHow does the expenditure cycle in accounting help an organization manage its expenses and control costs?Explain the following and describe its impact on the financial statements: a. cost principle b. conservatism c. time period assumption
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