Which of the Following Accounts Would Be Increased with a Credit

question 95

Multiple Choice

Which of the following accounts would be increased with a credit?

• A) Land; Accounts Payable; Drawing
• B) Accounts Payable; Unearned Revenue; Collins, Capital
• C) Collins, Capital; Accounts Receivable; Unearned Revenue
• D) Cash; Accounts Receivable; Collins, Capital

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Definitions:

Variable Costing

A technique in management accounting that only considers variable production costs as product costs, with fixed costs treated as period costs.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold to customers.

Absorption Costing

Absorption costing is an accounting method that includes all direct and indirect manufacturing costs in the cost of a product.

Net Operating Income

A financial metric that calculates a company's income after operating expenses are deducted, but before interest and taxes.