Question
9.4. Working Capital. Identify the working capital accounts related to (a) revenues recognized and deferred, (b) cost of goods sold, (c) employee salary and wages,
9.4. Working Capital.
Identify the working capital accounts related to (a) revenues recognized and deferred, (b) cost of goods sold, (c) employee salary and wages, and (d) income tax expense. For each account, indicate whether an increase in the working capital asset or liability would be an addition or subtraction when reconciling from net income to cash flows from operations.
9.5. Expense Recognition.
Provide three examples of expense recognition justified by (a) a direct relation with revenue (cause and effect) and (b) an indirect relation with revenue (the consumption of an asset or an increase in a liability during a period in which revenue is recognized).
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