Acctg 231 Exam 3 Fred Smith KSU
Question and answers complete
solution 2025/2026
Accruals - correct answer ✔1. Revenue earned, not yet received
2. Expense incurred, not yet paid
Deferrals - correct answer ✔1. Assets converting into expenses (prepaid insurance)
2. Liabilities converting into revenues
Inventoriable Costs - correct answer ✔Contains all of the costs to get a saleable good TO the point of
sale
Non-Inventoriable Costs - correct answer ✔If the cost supports the firm's avtivites, but it not for
inventory itself
Expenditure - correct answer ✔Cash outlay for anything
Expense - correct answer ✔Utilization of a resource to generate a revenue
Loss - correct answer ✔Did not get to utilize the resource to generate a revenue due to theft or selling
less than book value. (NOT an expense)
Cost of Goods Sold goes on the - correct answer ✔income statement
Ending Inventory goes on the - correct answer ✔Balance Sheet
Question and answers complete
solution 2025/2026
Accruals - correct answer ✔1. Revenue earned, not yet received
2. Expense incurred, not yet paid
Deferrals - correct answer ✔1. Assets converting into expenses (prepaid insurance)
2. Liabilities converting into revenues
Inventoriable Costs - correct answer ✔Contains all of the costs to get a saleable good TO the point of
sale
Non-Inventoriable Costs - correct answer ✔If the cost supports the firm's avtivites, but it not for
inventory itself
Expenditure - correct answer ✔Cash outlay for anything
Expense - correct answer ✔Utilization of a resource to generate a revenue
Loss - correct answer ✔Did not get to utilize the resource to generate a revenue due to theft or selling
less than book value. (NOT an expense)
Cost of Goods Sold goes on the - correct answer ✔income statement
Ending Inventory goes on the - correct answer ✔Balance Sheet
