An Adjusting Journal Entry That Includes an Increase to an Asset

question 109

Multiple Choice

An adjusting journal entry that includes an increase to an asset contra-account would include an increase in a(n) :

• A)related asset account.
• B)liability account.
• C)revenue account.
• D)expense account.

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Definitions:

Labour and Overhead

A combination of direct labor costs and indirect costs (overhead) associated with the production of goods or services.

Blending Department

A division in a manufacturing or processing plant where ingredients are combined to produce a final product.

Weighted-Average Method

This method calculates inventory and cost of goods sold values by averaging the costs of all goods available for sale, weighting them according to their quantities.

Labour and Overhead

Combined costs associated with the workforce (labour) and indirect expenses (overhead) necessary for production but not directly tied to specific units of product.