Accounting Answers

4. If the normal operating cycle is 8 months to August 30, 2023, and the 12 months after the reporting period will jump to the date of December 31, 2023, when is the threshold of

proving that the asset or liability is current? (Pick between August 30, 2023, and December 31, 2023, only Explain your position.)

5. Which of the following is the correct formula in finding COGS or COS? (1 point)

a.The COS for manufacturing entities is zero because of its value in deflation.

b.The COS for merchandising entities is goods available for sale minus the ending amount of inventories.

c.The COS for service entities is service available for sale plus the beginning service inventories.

d.The COS for service entities is equal to the adjusted market selling price.

6. Explain why the three items you have not chosen above are incorrect. (4 points)

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

3. Define an Unearned Revenue and discuss why this account is not yet a revenue.

journal entry for commencement of business with incorporation

Indenify which type of adjustment is indicated by these transactions. Choose accrued revenue, accrued expense, deferred revenue, or deferred expense.

a. Rent paid in advance for use of property.

b. cash received in advance for future services

c. supplies inventory purchased

d. fees earned but not yet collected