Which of the Following Is Most Likely to Result in an Adjusting

question 148

Multiple Choice

Which of the following is most likely to result in an adjusting entry at the end of the period?

• A) Payment of two months' insurance in advance
• B) Payment of one month's rent
• C) Owner's withdrawals
• D) Payment for routine maintenance on the company van

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Definitions:

Equivalent Units

Units of production expressed in terms of fully completed units; a concept used in manufacturing to measure output in a period that factors in incomplete units.

Material

The substance or substances from which something is made or can be made, often used in reference to supplies used in manufacturing.

Conversion Costs

Costs incurred to convert raw materials into finished products, typically including labor and overhead expenses.

Equivalent Unit

A measurement used in accounting to express the amount of work done on partially finished goods, converted into the equivalent of fully finished units.