Quiz Ch 08 – T/F Cost of Goods Sold: Merchandising Companies’ Largest Expense
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
In Merchandising Companies, the Cost of Goods Sold is the largest expense.
In Merchandising Companies, the Cost of Goods Sold is the largest expense.
Accounts receivable and notes receivable are commonly used as current liabilities.
The term “current portion of a long-term note payable” denotes the interest amount of a note payable that is due for payment within the current year.
A written promise with interest to pay a specific amount on a future date is called a note.
Disclosure of a contingent liability in the financial statements notes is necessary if there is a reasonable likelihood of incurring a loss or expense.
Employee Compensation is synonymous with Payroll.
Service Companies’ Major Expense is Employee Compensation.
Accounts payable is the main financing source for most financing expenses paid by large companies, such as Amazon.
Issuing short-term notes payable increases both liabilities and equity.
Accounts payable is the primary method of inventory purchase for large companies such as Amazon.