If the opening balance is not given in the question, the closing balance should be used as denominator. The two components of the formula of receivables turnover ratio are “net credit which of the following represents the receivables turnover ratio? sales” and “average trade receivables”. However, in examination problems, the examiners often don’t provide a …
They have already been incurred or spent and are separate from current decision-making processes. Direct materials are those materials used only in making the product and there is a clear, easily traceable connection between the material and the product. For example, iron ore is a direct material to a steel company because the iron ore …
Product Costs Types of Costs, Examples, Materials, Labor, Overhead Leia mais »
Income summary is a temporary account that is used at the end of the period to close all income and expenses in the income statement. In other words, all income goes to the credit of income summary while all expenses go to the debit of income summary resulting of the net amount in the income …
