Choose the correct option in the question.
Choose the correct answer from the given option.
1. Cost of goods sold is an:
a. asset
b. liability
c. revenue
d. expense
2. An expense is recognized when:
a. a business buys inventory
b. a business buys supplies
c. a business pays rent
d. a business repays a loan
3. Accounts Receivable decreases when:
a. goods are sold on credit
b. goods are purchased on credit
c. customers pay for goods previously purchased on credit
d. a payment is made for goods purchased on credit
4. Accounts payable increases when:
a. goods are sold on credit
b. goods are purchased on credit
c. customers pay for goods previously purchased on credit
d. a payment is made for goods purchased on credit
5. Which of the following is an example of a fixed asset?
a. building
b. supplies
c. inventory
d. cash