Answer to Question #234258 in Accounting for Another you

Question

A. Illustrate the operating cycle of a merchandising business.

B. Identify the following expense accounts if it is General & Administrative or Selling.

1. Advertising Expense

2. Salaries of Accounting Staff

3. Marketing Expenses

4. Store rental fees

5. Salesperson salaries and benefits

6. Depreciation of office equipment

7. Utilities used by the store

8. Freight out

9. Depreciation of Store building

10. Office Supplies Expense

Answer 1

A. A merchandising business's working cycle consists of three steps: procuring items from a supplier, selling merchandise to a customer, and collecting money.

B. General =4,6,7,10.

Selling =1,2,5

Administrative =3,9,8