Explain the difference between the nature-of-expense and function-of-expense classifications.

Question:

Explain the difference between the "nature-of-expense" and "function-of-expense" classifications.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 978-1119491057

8th edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

See More Books

Question Posted: Feb 12, 2018 10:26 AM

See More Questions

Explain the difference between the "nature-of-expense" and "function-of-expense" classifications
Explain the difference between accounting value added (earnings) and shareholder value added.
Explain the difference between an accelerated depreciation method and one that is not accelerated. Give an example of each.
Build Right Supply, Co., shows the following financial statement data for 2014, 2015, and 2016. Prior to issuing the 2016 statements, auditors found the ending inventory for 2014 was understated by...
Problem 3.19 Convert the coordinates of the following points from Cartesian to cylindrical and spherical coordinates: (a) P1 (1, 2, 0, (b) P2 (0, 0, 2), (c) P3 (1, 1, 3, (d) P4 (2, 2 2)
Prime Contractors (Prime) is a privately owned company that contracts with the U.S. government to provide various services under multiyear (usually five-year) contracts. Its principal services are as...
PR 16-1 What defines a business as a partnership? What factors need to be examined to determine if an individual is a partner, and not some other type of participant in the business?
At the end of its first year of operations, the Leo Company lists the following accounts and ending account balances related to stock transactions and dividends: During the first year the following...
At the end of 20X6, Home Ltd. reported the following in shareholders equity: Common shares, no-par value; authorized, unlimited shares; issued, 14,470,000 shares $ 18,891,000 Retained earnings...
Mr. Chai has been trading for some years as a wine merchant. The following list of balances has been extracted from his ledger as at 30 April 20X7, the end of his most recent financial year. Ghc...
Goods costing $2,000 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18, a $200 credit was received from the supplier for damaged goods. Give the journal entry on July 24...
The financial statements of Zetar plc are presented in Appendix C. The company's complete annual report, including the notes to its financial statements, is available at www.zetarplc.com....
Calculate the higher and lower heating values of gaseous methane fuel (CH 4 ). Compare your results with the values in Table A27.
Is there a difference between a Leader and a Manager; if yes, what and what are the differences? What is the message of the video ? https://youtu.be/TQhns5AwAkA
Thomas Inc. purchased 90% of Tracy Co. for $990,000 when the book value of Tracy was $1,000,000. There was no premium paid by Thomas. Tracy currently has 100,000 shares outstanding and a book value...
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An...
A Community Hospital has two (2) service departments: Maintenance and Food Services. The hospital has three (3) patient care units, namely: General Medicine, OB, and Surgery. Additional information...
The following link is for the United States International Trade Commission database on current tariffs that the United States has in place: https://dataweb.usitc.gov/tariff/database This link is for...
Problems 142151 are based on previously learned material. The purpose of these problems is to keep the material fresh in your mind so that you are better prepared for later sections, a final exam, or...
Assume a simple Keynesian depression economy with a multiplier of 4 and an initial equilibrium income of $3,000. Saving and investment equal $400, and assume full employment income is $4,000. a. What...
(a) What is the term used to describe the owners equity section of a corporation? (b) Identify the two owners equity accounts in a corporation and indicate the purpose of each.
At December 31, accrued salaries payable totaled $3,500. On January 10, total salaries of $8,000 are paid. (a) Assume that reversing entries are made at January 1. Give the January 10 entry, and...
The steps in using a worksheet are presented in random order below. List the steps in the proper order by placing numbers 15 in the blank spaces. (a) _____ Prepare a trial balance on the worksheet....
7 . 4 3 Buy - side vs . sell - side analysts' earnings forecasts. Refer to the Financial Analysts Journal ( July / August 2 0 0 8 ) study of earnings forecasts of buy - side and sell - side analysts,...
Bond P is a premium bond with a coupon of 8.6 percent , a YTM of 7.35 percent, and 15 years to maturity. Bond D is a discount bond with a coupon of 8.6 percent, a YTM of 10.35 percent, and also 15...
QUESTION 2 (25 MARKS) The draft financial statements of Sirius Bhd, Vega Bhd, Rigel Bhd and Capella for the year ended 31 December 2018 are as follows: Statement of Profit or Loss for the year ended...

Explain the difference between the nature-of-expense and function-of-expense classifications.

Question:

Step by Step Answer:

Expenses may be classified by nature or by function The natureofexpen...View the full answer

Financial Accounting

Students also viewed these Cost Accounting questions