Which of the Following Are Likely to Be a Separately

question 153

Multiple Choice

Which of the following are likely to be a separately stated item for an S corporation.

• A)Interest expense on a business loan.
• B)Deduction for accrued salaries.
• C)Cost of goods sold.
• D)The gain on the sale of depreciable property used in a business and held for more than one year.

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Definitions:

Sales On Account

Transactions where goods or services are delivered but payment is delayed, creating an account receivable on the balance sheet.

Average Sale Period

The average sale period is a financial metric indicating the average time taken to convert inventory into sales, also known as the inventory turnover period.

Balance Sheet

An accounting document that outlines a business's resources, debts, and stakeholders' equity at a designated time.

Sales On Account

Sales made on credit, where the buyer is allowed to pay at a later date.