As Compared to Natural Accounts, FUNCTIONAL ACCOUNTS

question 36

Multiple Choice

As compared to natural accounts, FUNCTIONAL ACCOUNTS:

• A) are the accounts to which various costs are charged in the normal accounting cycle.
• B) show the purpose for which expenditures are made.
• C) include items such as storing, salaries, and taxes.
• D) All of these.
• E) Both are the accounts to which various costs are charged in the normal accounting cycle; and include items such as storing, salaries, and taxes.

Understand the application of logical patterns in various contexts.

Appreciate the historical and philosophical significance of logic.

Understand and apply the concept of applying a generalization in logical reasoning.

Recognize and explain the fallacy of false composition.

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Definitions:

Freight Costs

Expenses incurred by a company to transport goods, included in the cost of goods sold or recorded as an expense depending on the terms of delivery.

Merchandise

Merchandise refers to the goods that are bought and sold within a retail or wholesale environment.

Cash Discount

A reduction in the invoice price given by the seller to the buyer for quick payment within a specified period.

Merchandise

Products that a company buys to resell to its customers.