Equivalent Production Expresses All Activity of the Period in Terms

question 128

Multiple Choice

Equivalent production expresses all activity of the period in terms of

• A) work in process
• B) materials, labor and overhead
• C) fully completed units
• D) partially completed units

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Definitions:

Owner's Drawings

The act of an owner drawing funds from a business in a sole proprietorship or partnership for personal needs.

Capital Account

A capital account is a financial statement that shows the changes in a company’s assets, liabilities, and equity, or an individual part of a nation's balance of payments reflecting net change in ownership of national assets.

Owner's Equity

The residual interest in the assets of a business after all liabilities are deducted.

Liabilities

The sum of all debts and financial commitments a company owes to external parties, appearing on the company's balance sheet.