When Equipment Is Purchased on Account, What Proprietary Accounts Are

question 20

Multiple Choice

When equipment is purchased on account, what proprietary accounts are credited?

• A) Accounts Payable and Unexpended Appropriations.
• B) Cash and Unexpended Appropriations.
• C) Accounts Payable and Appropriations Used.
• D) Accounts Payable and Expended Appropriations.

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Definitions:

Total Activity

The measure of the total amount of work or production completed in a specific period.

Activity Cost Pool

A collection of costs grouped together based on similar cost drivers or activities, used in activity-based costing to allocate costs more accurately.

Activity Rate

A measure used in cost accounting to allocate overhead costs to products or services based on specific activities or processes.

Product R0

Tends to refer to an initial product concept or prototype, but not a standard key term. NO.