Flashcards in Chapter 2 Deck (6)
When recognizing expired assets, rent is?
a period cost, matched to the period it benefits
When recognizing expired assets, equipment costs are?
a depreciation expense
The income statement is really just?
a way of explaining changes between one balance sheet and another
Revenue and expense accounts are nothing more than?
subdivisions of stockholders' equity
What is the purpose of income statements?
to summarize the volume of sales and the various expenses so we can measure income