Ask Question
BusinessBusiness
22 May, 07:15

How should sbs classify the spare parts that it expects to use within one year - as inventory or as a prepaid/other current asset?

+1
Answers (1)
  1. 22 May, 08:59
    0
    Sbs could do it by starting to find out each functions of the spare parts.

    If the spare parts is resided to be a part of the product, it should be classified as inventory.

    IF the spare parts is resided for people who want to redeem warranty, it shold be classified as prepaid.

    If the spare parts is part of research and development it should be classified as other assets.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “How should sbs classify the spare parts that it expects to use within one year - as inventory or as a prepaid/other current asset? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Kaye owns an 85% interest in the capital and profits of Amor Antiques, a partnership. In Year 2, Kaye sold an oriental lamp to Amor for $6,000.
Answers (1)
Which of the following is NOT a possible reason why Uber opted to expand its on-demand transportation services into foreign markets?
Answers (1)
N the 1930s, what caused Canada to respond by raising its tax on goods imported from the United States? the Glass-Steagall Act the drop in the gold standard the global depression the Hawley-Smoot Tariff
Answers (1)
Caitlin Grasso is a salesperson in the kitchen and bath department at Morris Supplies, Inc. She is guaranteed a minimum salary of $200 per week plus 5.5% of her total sales. What are her total sales for a week in which her gross pay was $560.
Answers (1)
What are the input, conversion, and output of operating a summer band camp
Answers (1)
New Questions in Business
Match the business with the appropriate cost system (s) for that business using the number of the cost system where 1 = job order costing, 2 = process costing, and 3 = activity-based costing. a. Ketcher, Tryer, and Friar, attorneys-at-law b.
Answers (1)
Solemon Company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If Solemon wants to earn a targeted profit of $3,600, how many units must be sold?
Answers (1)
Using the following information, what is the amount of net income? Purchases $ 33,189 Selling expenses $ 758 Merchandise inventory, September 1 7,436 Merchandise inventory, September 30 8,978 Administrative expenses 760 Sales 51,684 Rent revenue 832
Answers (1)
You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the workers are an example of project indirect costs. O True O False
Answers (1)
K Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 17,000 $ 12,000 Finished goods $ 46,000 $ 50,000 Additional information: Direct materials $ 57,000 Direct labor cost $ 87,000 Manufacturing
Answers (1)
Home » Business » How should sbs classify the spare parts that it expects to use within one year - as inventory or as a prepaid/other current asset?
Sign Up Forgot Password?