Classifying Incomes & Expenses

John purchased 2 bags of seed corn for his business.

• income

• expense

John sold 50 dozen ears of sweet corn.

• income

• expense

The two main types of income are _____ and ____.

(a)  

Which of the following is NOT one of the main categories of expenses?

• labor

• inputs

• asset purchases

• sales

An asset is an item that holds value for the business.

• true

• false

A current asset has a useful life of...

• 1 month

• 1 year

• 2 years

• 3 years

A non-current asset has a useful life of...

• 6 months

• 1 year

• 1+ years

• 10 years

A variable expense has the same cost every time it is purchased.

• true

• false

Non-current assets include buildings, vehicles, equipment, and land.

• true

• false

truck & trailer

• current asset

• non-current asset