Answer to Question #244003 in Accounting for nicole

Question

1. Which of the following attributes will classify an item which can be seen as a liability in

the Statement of Financial Position?

a. Expenses paid before the actual utilization

B. Expenses already utilized and paid for.

c. Expenses already utilized but have not yet paid for

D. All expenses cannot be classified as a liability component

2. What is the most correct definition of Cost of Goods Sold?

a. This is the cost associated with advertising the product we are selling

b. This is the cost associated with manufacturing the product we are selling

c. This is the cost associated with finances and other incurrences from interest

d. This is the cost associated with office expenses which are periodic in nature

Answer 1

1.c. Expenses already utilized but have not yet paid for

2.b. This is the cost associated with manufacturing the product we are selling