How is the matching rule applied when accounting for merchandise inventory?
Merchandise inventory is classified as an asset when it is acquired or manufactured because it has future economic benefit. When the inventory is sold, sales revenue is generated, and the inventory cost is converted to an expense (cost of goods sold) in accordance with the matching rule.
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The set of values or principles that govern a corporation's practices relating to the environment is referred to as:
A) An environmental ethic B) Eco-ethics C) Business sustainable development D) Sustainable development E) Social Impact Investing
Which of the following is not a component of the operating cycle?
a. Sales to customers b. Collection of accounts receivable c. Recognition of depreciation d. Purchases from suppliers
The controller of an organization participates in
A) planning B) controlling C) decision making D) all of these
Howard Enterprises has a contribution margin ratio of 65% and fixed costs of $15,000. What would sales have to be in order for Howard to earn an after-tax profit of $50,000? The company is in the 40% tax bracket
A) $23,077 B) $100,000 C) $151,282 D) $75,000