Decreases in Equity That Represent Costs of Providing Products or Services

question 49

Multiple Choice

Decreases in equity that represent costs of providing products or services to customers,used to earn revenues are called:

• A)Liabilities.
• B)Equity.
• C)Dividends.
• D)Expenses.
• E)Common Stock.

Identify strategies for effective listening.

Recognize the significance of etiquette in workplace communication.

Understand the influence of physical appearance and personal habits on professional image.

Distinguish appropriate from inappropriate use of technology and mobile devices in the workplace.

---

Definitions:

Periodic Inventory System

An inventory accounting system where updates are made on a periodic basis, such as monthly or yearly, rather than continuously.

Average-Cost Method

An inventory valuation method that calculates stock value based on the average cost of goods available for sale during the period.

Ending Inventory

Refers to the total value of goods available for sale at the end of an accounting period, not yet sold.

Lower-of-Cost

A principle requiring that inventory is recorded at the lower cost between its original purchase price and its current market price.