A Debit to an Asset Account Indicates

question 3

Multiple Choice

A debit to an asset account indicates

• A) an error.
• B) a credit was made to a liability account.
• C) a decrease in the asset.
• D) an increase in the asset.

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Definitions:

Weighted Average Method

An inventory costing method that assigns an average cost to each unit in inventory, calculated by dividing the total cost of goods available by the total units available.

Equivalent Units

A term used in cost accounting to represent a partial completion of a product, measured in units of a fully completed product.

Weighted Average Method

An inventory costing method that assigns an average cost to each item based on the total cost of goods available for sale and the number of items available.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of complete units with regards to work done or costs incurred.