If a Fast Food Restaurant Has Hamburger Patties on a Serving

question 44

Multiple Choice

If a fast food restaurant has hamburger patties on a serving tray at the cash register, these would be classified as inventory.

• A) finished goods
• B) maintenance, repair, and operating
• C) raw materials
• D) work in progress

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Definitions:

Balance Sheet Approach

A method in accounting that focuses on valuing assets and liabilities at their current fair market values.

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenses to the appropriate periods.

Allowance for Doubtful Accounts

This is a subsidiary asset account created to approximate the amount of accounts receivable that could potentially be non-collectable.

Bad Debts Expense

An expense account reflecting estimated uncollectible amounts from customers for credit sales made in a specific period.