Which of the Following Is an Example of a Fixed

question 37

Multiple Choice

Which of the following is an example of a fixed asset?

• A) Cash
• B) Prepaid expense
• C) Equipment
• D) Inventory

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Definitions:

Work in Process

The cost of unfinished goods in the manufacturing process including labor, raw materials, and overhead.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold or distributed to customers.

Cost Ledger

A subsidiary ledger that records the details of costs associated with the production of goods or services, often part of a larger accounting system.

Materials Ledger

A detailed record keeping system that tracks the quantity and cost of materials on hand, used primarily in manufacturing and production settings.