In the Manufacturing Sector,the Percentage of Purchases to Sales Averages

question 24

True/False

In the manufacturing sector,the percentage of purchases to sales averages 55%.

---

Definitions:

Rent Payable

A liability account that records the amount of rent owed but not yet paid to the landlord.

Prepaid Rents

Payments made in advance for rent, which are recorded as an asset and then expensed over the period the payment covers.

Rent Expense

The cost incurred for leasing property, equipment, or other assets for business operations, recognized as an expense in the income statement.

Liability Until Earned

Liability Until Earned refers to revenue received in advance of being earned and is recorded as a liability on a company's balance sheet until the service or product is delivered.