Differentiate between revenue and expenses.
What will be an ideal response?
Revenue (also called sales income) is the value received by a business in return for services performed or goods sold. A business receives revenue in the form of cash or accounts receivable.
Expenses, such as the costs of paying people to work for a small business (or for goods or services provided to a small business), include such items as materials, wages, insurance, utilities, transportation, depreciation, taxes, supplies, and advertising. As these costs are incurred, they are deducted from revenue.
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If the beginning inventory is $45,000 and the ending inventory is $38,000, the first step in adjusting merchandise inventory is to debit the merchandise inventory account for $45,000
Indicate whether the statement is true or false
Organizations have ______ turnover when employees cannot figure out what is necessary to be successful in their individual jobs and the organization has to terminate their employment.
A. involuntary B. voluntary C. qualitative D. organic
An act of performance is necessary to create a bilateral contract
Indicate whether the statement is true or false
A ________ refers to a contract that transfers limited rights in intellectual property and informational rights
A) lien B) tender C) license D) trademark