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Flashcards in Chapter 2 Deck (6)
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1

When recognizing expired assets, rent is?

a period cost, matched to the period it benefits

2

When recognizing expired assets, equipment costs are?

a depreciation expense

3

The income statement is really just?

a way of explaining changes between one balance sheet and another

4

Revenue and expense accounts are nothing more than?

subdivisions of stockholders' equity

5

What is the purpose of income statements?

to summarize the volume of sales and the various expenses so we can measure income

6

When recognizing expired assets, inventory costs are?

product costs