Question 31 Expenditures that add to the utility of fixed assets for more than one accounting period are committed expenditures revenue expenditures utility expenditures capital expenditures Question 32 Inventory is classified on the balance sheet as a current liability current asset long-term asset long-term liability Question 33 What is the type of account and normal balance of Allowance for Doubtful Accounts? Asset, debit Asset, credit Contra asset debit Contra asset. credit Question 34 The matching concept addresses the relationship between the journal and the balance sheet. o determines whether the normal balance of an account is a debit or credit. requires that the dollar amount of debits equal the dollar amount of credits on a trial balance. states that expenses related to revenue be reported at the same time the revenue is reported. Moving to another question will save this response. Question 35 A consignor who has goods out on consignment with an agent should include the goods in ending inventory even though they are not in the possession of the consignor. O True False estion will save this response. Question 36 Prepaid expenses are eventually expected to become expenses when their future economic value expires. Obecome revenues when services are performed. become expenses in the period when they are paid. become revenues when the liability is no longer owed. Question 37 To record estimated uncollectible receivables using the allowance method, the adjusting entry would be a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable debit to Loss on Credit Sales and a credit to Accounts Receivable Question Completion Status: A Moving to another question will save this response. Question 38 What is the term applied to the excess of net revenue from sales over the cost of merchandise sold? gross profit income from operations net income gross sales A Moving to another question will save this response. hp SC ? TE Question 39 25 points The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the year. What is the amount of cost of merchandise sold for the year according to the method Given the following? Beginning inventory - 5 units at 561 First purchase-15 units at 16 Second purchase - 10 units at 574 Third purchase - 10 units at 577 O $1.380 O $1,375 51.510 $1.250 Question 40 Stockholders' equity is usually equal to cash on hand includes paid-in capital and liabilities includes retained earnings and paid-in capital is shown on the income statement
