Data Must Be Collected About Three Facets of Each Business

question 52

Multiple Choice

Data must be collected about three facets of each business activity.What are they?

• A)the business activity,the resources it affects,the people who participate
• B)the business activity,the transactions it creates,the impact on the financial statements
• C)the inputs,outputs and processes used
• D)who is involved,what was sold,how much was paid

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Definitions:

Warranty Accrual Method

An accounting approach that recognizes the estimated cost of fulfilling product warranties as an expense when the related sales occur.

Warranty Costs

Expenses incurred by a company to repair, replace, or refund products that are found to be defective within the warranty period.

Sales

The total revenue generated from the sale of goods or services by a company during a specific period.

Trade Accounts Payable

Short-term liabilities owed to suppliers for goods or services purchased on credit.