the operating expenses sectionoperating expenses
The operating expenses section
Operating Expenses - directly associated to the sale of merchandise
General expenses (administrative expenses) related to business's office, overall administration of business.
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preparing financial statements for a merchandising businessthe statements are completed in this order1 income statement contains only expenses
classified income statementit is more involved for a merchandising business to conclude net loss or net income income statement is categorized into
determine the symbols of net sales for the period- cost of goods sold gross profit- operating expenses
determine about the revenue sectionrevenue section provides a figure for net sales which is balance of the sales account less the balances of contra
the operating expenses sectionoperating expenses - directly associated to the sale of merchandisegeneral expenses administrative expenses related to
state the classified balance sheetassetscurrent assets are cash and any other assets which are expected to be realized in cash sold used up or expire
state the term- liabilitiescurrent liability is a debt which is due for payment within one year long-term liability is one not paid in a yearowners
determine the term - working capital and current ratiodetermining these ratios would help a business determine if will have enough capital to operate
determine the concept of closing entries-reid1 close sales account and other income statement accounts with credit balances to income
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