Yes, inventory is considered a current asset. Current assets or short-term assets are accounts that track what a company owns and expects to use within a year. And since inventory is intended to be sold within 12 months, it’s recorded as a current asset in thebalance sheet. But why is...
For instance, say company XYZ purchases $10,000 worth of equipment when it first begins business. This equipment is expected to provide value for a 5 year time period. With depreciation, $2,000 ($10,000/5 years) is expensed every year in order to match expenses with the time period the...
D、Merchandise inventorydoes not appear on the balance sheet of a service company. E、Merchandise inventory purchases are not considered part of the operating cycle for a business. 点击查看答案&解析 手机看题 你可能感兴趣的试题 问答题 影响人的健康的因素有[填空(1)] 、[填空(2)] 、社会因素...
land held for a possible future plant site On a classified balance sheet, prepaid insurance is classified as: a. an intangible asset b. property, plant, and equipment c. a current asset d. a long-term investment ...
Answer choice: a. True Explanation: A retail business purchases merchandise from wholesalers and sell that merchandise to consumers. Inventory is...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer yo...
A client purchases a package of 20 person training sessions for $2000, or $100 per session. She pays for them in advance. The personal trainers enters $2000 as a debit to cash and $2000 as a credit to unearned revenue.The client doesn’t have regular training sessions. After two months...
Ending Inventory = Beginning Balance + Purchases – Cost of Goods Sold Higher sales (and thus higher cost of goods sold) leads to draining the inventory account. The conceptual explanation for this is that raw materials, work-in-progress, and finished goods (current assets) are turned into rev...
Returning inflation to its 2% target is at the heart of the MPC’s actions over the past 10 months. Ceasing asset purchases; starting to raise Bank Rate; beginning to shrink the asset portfolio; considering starting to sell gilts acquired via QE: all these actions serve to tighten mon...
When a business purchases capital assets, the Internal Revenue Service (IRS) considers the purchase acapital expense. In most cases, businesses can deduct expenses incurred during a tax year from their revenue collected during the same tax year, and report the difference as their business income. ...
For example, suppose a trader purchases a contract with 100 call options for a stock that’s currently trading at $10. Each option is priced at $2. Therefore, the total investment in the contract is $200. The trader will recoup her costs when the stock’s price reaches $12. Thereafter...