Natural Resources, Farm Produce, and Lumber Constitute _____

question 152

Multiple Choice

Natural resources, farm produce, and lumber constitute _____.

• A) raw materials
• B) accessory equipment
• C) component parts and materials
• D) installations

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Definitions:

Asset Account

An account that represents a resource owned by a business from which future economic benefits are expected.

Expense Account

An account used to record expenses incurred by a business, which are then used to reduce income on the profit and loss statement.

Understated

Understated means that a financial amount has been reported or recorded as less than its actual or true value.

Posting

The process of recording financial transactions in the accounting ledger from the journal.