There are several balance sheet and income statement accounts related to the acq

Question

There are several balance sheet and income statement accounts related to the acquisition and payment cycle. The most significant balance sheet and income statement accounts are: (Select all that apply.)

A. Property, plant and equipment

B.Other accrued liabilities

C.Taxes

D.Other significant accounts such as administrative expense, rent expense, repairs and maintenance, or legal expense.

E.Cash in bank

F.Commissions

G.Sales

H.Accounts payable

I.Accounts receivable

J.Prepaid expenses

K.Cost of goods sold (including purchases)

L.Income tax expense

M.Depreciation expense

Explanation / Answer

A Property. Plant and Equipment, these are the main accounts effected

C (Purchase taxes and Excise and Customs etc), Any of these payable on the acquisition need to be capitalized or expensed off

E For any payments to be made

F Any commissions payable on sales or puchases

H All payables are covered in payments cycle

J When you pay for an expense in advance, it should be included while considering payments cycle

L Income taxes both federal and state need to be paid and on time

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