Grill Corporation Sold All of Its Business Assets When It

question 56

Multiple Choice

Grill Corporation sold all of its business assets when it went out of business.Which of the following is a capital asset?

• A)Inventory
• B)Office equipment
• C)Goodwill
• D)Factory machinery

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Definitions:

T-Accounts

A visual representation used in accounting to depict the debits and credits of an account, showing two sides of transactions within a ledger.

Transactions

Financial activities or exchanges between parties that involve the transfer of goods, services, or funds.

Overapplied Overhead

When the overhead costs allocated for manufacturing are higher than the actual overhead expenditures.

Manufacturing Overhead

All manufacturing costs excluding direct materials and direct labor, such as utilities, depreciation, and salary of supervisors.