Determine whether each of the following is an asset, liability, revenue, expense, equity, or nothing according to SFAS. If more than one account is affected analyze the impact on all accounts. Assume a year end of December 31st. Analyze the impact on all accounts. Justify your answer with an appropriate "theory" An example of a "theory" would be revenue recognition or historical cost, etc. Indicate both sides of the transactions and whether the account will increase or decrease.
a. Merchandise ordered from supplier on December 29th will not be shipped until January 4th.
b. The cash outflow the company will need next month to purchase merchandise to resell. No purchase orders have been placed as of December 31st.
c. Labor costs incurred to build the company's main product for resale.