Directions: Read each sentence carefully and determine whether the statement is TRUE or FALSE. Write the letter that corresponds the best answer on the space provided before the number. 1.The categories of expenses under the function of expense methodindudes cost of sales, selling expenses, ad administrative expenses. _2. Losses incuned an sale of non-current assets are presented under "Administrative Expenses". 3. A statement of comprehensive income that presents separately an entity's cost of sales is said to have been prepared using the single-step method. 4.A statement of comprehensive income that shows expenses by their functionis said to have been prepared using the milti-step approach _5. Interest expense isaline account found inan Statement of Comprehensive Income prepared fdlowing the multi-step format. _6. Cost of sales is computed as cost of goods available for sale less ending inventory. 7. In periodic inventary accournting, inventoryis determined by condicting a physical court of merchandise owned. _8. Goods retumed by customers are deducted to the Net Sales account.
Directions: Read each sentence carefully and determine whether the statement is TRUE or FALSE. Write the letter that corresponds the best answer on the space provided before the number. 1.The categories of expenses under the function of expense methodindudes cost of sales, selling expenses, ad administrative expenses. _2. Losses incuned an sale of non-current assets are presented under "Administrative Expenses". 3. A statement of comprehensive income that presents separately an entity's cost of sales is said to have been prepared using the single-step method. 4.A statement of comprehensive income that shows expenses by their functionis said to have been prepared using the milti-step approach _5. Interest expense isaline account found inan Statement of Comprehensive Income prepared fdlowing the multi-step format. _6. Cost of sales is computed as cost of goods available for sale less ending inventory. 7. In periodic inventary accournting, inventoryis determined by condicting a physical court of merchandise owned. _8. Goods retumed by customers are deducted to the Net Sales account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Directions: Read each sentence carefully and determine whether the statement is TRUE or FALSE. Write the letter
that corresponds the best answer on the space provided before the number.
„1. The categories of expenses under the function of expense method indludes cost of sales, selling expenses,
and administrative expenses.
2. Losses incuned an sale of non-current assets are presented under “Administrative Expenses".
3.A statement of comprehensive income that presents separately an entity's cost of sales is said to have been
prepared using the single-step method.
4. A statement of comprehensive income that shows expenses by their function is said to have been prepared
using the milti-step approach
_5. Interest expense is a line account found inan Statement of Comprehensive Income prepared following the
milti-step format.
_6. Cost of sales is computed as cost of goods available for sale less ending inventory.
-7. In periodic inventary accourting, inventory is determined by conducting a physical count of merchandise
owned.
_8. Goods retumed by customers are deducted to the Net Sales account.
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