Practice Quiz

Veterinary Practice Manager

Category - CVPM

Start a Study Session Sign up for Question of the Day
In the American Animal Hospital Association’s (AAHA) chart of accounts, what is the “cost of goods and services” account used for?
  1. To record transactions that are related to the cost of doing business, but do not fit into other categories
  2. To combine the totals of inventory and payroll, in order to compare against income
  3. To separate the expense that is incurred directly as a result of providing goods and services
  4. To prepare financial reporting summaries only; there is no other functional purpose
Explanation
Answer: C- In the American Animal Hospital Association’s (AAHA) chart of accounts, the “cost of goods and services” account is used for separating the expense that is incurred directly as a result of providing goods and services. Examples include laboratory expense, and imaging expense.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz