F1M2

Question 1

Use of IS

Answer 1

1. determine profitability; valuing investment worthiness & credit worthiness

Question 2

two types of costs

Answer 2

general costs and unexpired costs

Question 3

unexpired costs items

Answer 3

inventory(COGS); unpaid cost of insurance(Insurance expense); net book value of fixed assets(depreciation expense); unexpired cost of patent(amortization)

Question 4

two types of BS and IS

Answer 4

classified BS and unclassified BS; one step IS and multiple steps IS.