Listed Below Are Five Terms Followed by a List of Phrases

question 83

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the correct term.
-Rearrangements

• A)Triggers commencement of depreciation.
• B)Cost less accumulated depreciation.
• C)Expenditures made to restructure an asset without addition, replacement, or improvement.
• D)Only used for tax purposes.
• E)Three methods are employed to record these costs.

Learn the difference between the allowance method and the direct write-off method of accounting for uncollectible accounts.

Recognize the implications of a debit balance in the Allowance for Doubtful Accounts.

Understand the role and presentation of the Allowance for Doubtful Accounts on the balance sheet.

Analyze the impact of collecting a previously written-off account on a company's income and accounting records.

---

Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.

Average Inventory

An accounting metric that estimates the value or the number of a particular good that a company has in stock over a specific period.

Return on Common Shareholders' Equity Ratio

A financial metric that measures a company's profitability by showing how much profit it generates with the money shareholders have invested, specifically focusing on common stockholders.

Profit Margin

A financial metric that measures the amount of profit a company earns per dollar of revenue, indicating the efficiency of the company in converting sales into profits.