For Each of the Following Items That Appear on the Balance

question 112

Essay

For each of the following items that appear on the balance sheet,identify each as an asset (A),liability (L),or element of stockholders' equity (SE).For any item that would not appear on the balance sheet,write the letter,N. $$\begin{array} { l l } \text { Retained earnings } & ------\\\text {Accounts payable } & ------\\\text { Selling expense } & ------\\\text { Contributed capital } &------ \\\text { Accounts receivable } & ------\\\text { Income tax expense } &------ \\\text { Income tax expense } & ------\\\text { Dividends} & ------\\\text { Property and equipment } &------ \\\end{array}$$

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Definitions:

Cost Of Goods Sold

Costs directly connected to the creation of a company's sold goods, encompassing both materials and labor.

Finished Goods Inventory

This represents the stock of completed products that are ready to be sold but have not been sold yet.

WIP Inventory

Work in Process Inventory, representing the cost of unfinished goods in the production process.

Variable Product Cost

Costs that change in direct proportion to the level of production, such as materials and direct labor.