Indicate whether each of the following items is a real or nominal account and whether it appears in the balance sheet or the income statement. (a) Prepaid Rent.(b) Salaries and Wages Payable.(c) Inventory.(d) Accumulated DepreciationEquipment.(e) Equipment.(f) Service Revenue.(g) Salaries and Wages Expense.(h) Supplies.
Accounting Ch.1 Out of pocket vs. Opportunity Out of pocket- involve actual outlay of cash Opp.- the foregone benefit of the path not taken Direct vs. Indirect Direct Costs- costs that can be easily and conveniently traced to unit of product Indirect cost- costs that cannot be easily and conveniently traced to product Variable vs. fixed costs Variable cost- change, in total, indirect proportion to changes Fixed cost- do not change in total regardless of activity level, with some reasonable range of activity Manufacturing vs. Nonmanufacturing Manufacturing/product cost o Materials- major material inputs that can be physically traced o Labor (direct)- everyone who touches the product o Over
