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
You might also like to view...
______ is at the center of the diversity wheel.
A. Philosophy B. Philanthropy C. Perception D. Personality E. Psychology
Low barriers to entry would result in decreased competition
Indicate whether the statement is true or false
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
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.