A Company Reports Raw Materials Used of $42,750 for a Year,with

question 167

Multiple Choice

A company reports raw materials used of $42,750 for a year,with beginning raw materials inventory of $4,000 and an ending raw materials inventory of $4,500.Compute days' sales in raw materials inventory based on this data.

• A) 10.52 days.
• B) 34.15 days
• C) 10.06 days
• D) 38.42 days
• E) 9.35 days

Define and calculate depreciation, including straight-line method, and understand its impact on the balance sheet.

Comprehend the importance of accurately recording expenses, such as supplies and prepaid rent, and its effect on financial statements.

Identify different classes of assets and understand how their cost is reported and amortized over time.

Distinguish between expense and asset classification and the significance of each in financial reporting.