If a company purchases inventory on account, what type of accounts are affected? (i.e., assets. liabilities, revenues. expenses, equity ?  Explain Briefly

Q: In which financial statement is the inventory account balance presented?

A: In general there are Four Major components of financial statements a) Balance Sheet  b) Profit and…

Q: How do inventory errors affect the financial statements.

A: The financial statements of the business includes the income statement and balance sheet.

Q: The principles and objectives that guide the creation of accounting information under accrual…

A: The matching principle, which is related to accrual accounting, asserts that an expense must be…

Q: How can I find a company's:  Total Asset Turnover inventory Turnover Measures Accounts Receivable…

A: Formula for finding Total Asset Turnover is shown as follows: Where in – Sales are taken after…

Q: How to write-off non recurring items in accounting?

A: Non Recurring Items: Unexpected and unusual Entries in the income statement which are not supposed…

Q: What are the different methods of inventory valuation, and how do they impact a company's financial…

A: Inventory valuation refers to the process of assigning a monetary value to the inventory held by a…

Q: What are the principles of accounting according to GAAP?

A: GAAP: Generally Accepted Accounting Principle (GAAP) is a common set of accounting principles,…

Q: What accounts would you see on a Balance Sheet and/or Income Statement, if a company had inventory?

A: The objective of the question is to identify the accounts that would appear on a company's Balance…

Q: What aspects of accounting for inventory on financial statements would be of interest to…

A: Inventory accounting is the term used for valuing and accounting for the assets that are recognized…

Q: What are the process of accounting?

A: The question has covered the concept of the process of accounting.

Q: What do the decisions based on accounting information include?

A: Accounting information is the collection and processing of the business transaction to conclude the…

Q: 4. Which of the following accounts are used when recording a purchase?

A: 1. If Cash purchase: If the purchase is made out of cash, both cash and inventory accounts are used…

Q: When is LIFO Inventory a preferred method?   **In regards to Financial Accounting.

A: LIFO (Last in, First out ) : It is an accounting method that an organization uses to determine the…

Q: why are current liabilites important in accounting

A: Current liabilities are important in accounting because they represent the obligations that an…

Q: Which of the following transaction is not recorded in the general journal? Select one: A. All of…

A: Correct option is A i.e.  All of the above

Q: When recording a purchase of inventory on credit, which accounts are typically affected? A) Debit…

A: When assets or expenses increases it should be debited and when decreases it should be…

Q: How does IFRS APPLY TO THE ACCOUNTING CYCLE AND FINANCIAL REPORTING?

A: IFRS - International Financial Reporting Cycle is the standard set by the IASB (International…

Q: Define accounting earnings.

A: Accounting Earnings: Accounting Earnings is a Earning which stated on income statement. Accounting…

Q: Why would companies perform a set-off of assets and liabilities?

A: Assets are the resources which help in generating profits. The assets can be controlled and used by…

Q: What does the Financial Accounting Information means?

A: Financial Accounting Information can give a picture of a business's past performance, current…

Q: 2. When Inventory is sold, how is the cost of goods sold account affected? Briefly explain

A: Inventory is an asset which is recorded in the balance sheet . It is the merchandise owned by the…