Kathy charged her groceries on her credit card. The cost of the groceries is now a

A)

current liability.
B)

noncurrent liability.
C)

noncurrent asset.
D)

current asset.


A

Business

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______ is at the center of the diversity wheel.

A. Philosophy B. Philanthropy C. Perception D. Personality E. Psychology

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Low barriers to entry would result in decreased competition

Indicate whether the statement is true or false

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Which of the following equations can be used to budget purchases? (BI = beginning inventory, EI = ending inventory desired, CGS = budgeted cost of goods sold, P = budgeted purchases)

a. P = CGS + BI - EI b. P = CGS + BI c. P = CGS + EI + BI d. P = CGS + EI - BI

Business

Under the perpetual inventory system, a physical count shows a $90.00 overage. How would the overage be entered into the journal and how would it be stated on the income statement?

a. Cost of Goods Sold would be debited $90.00 and Merchandise Inventory would be credited $90.00 with no effect of the overage being reported on the income statement. b. Inventory Short and Over would be debited $90.00 and Merchandise Inventory would be credited $90.00 and the overage would reported as an expense on the income statement. c. Merchandise Inventory would be debited $90.00 and Sales would be credited $90.00 with the revenue being reported on the income statement. d. Merchandise Inventory would be debited $90.00 and Inventory Short and Over would be credited $90.00 and the overage would be reported as other revenue on the income statement. e. Cash would be debited $90.00 and Accounts Receivable would be credited $90.00 and the overage would be reported as an expense on the income statement.

Business