Tra Corporation Is Analyzing Its Account Balances for 2016

question 154

Multiple Choice

Tra Corporation is analyzing its account balances for 2016.As of the end of 2016, a debit balance of $4,000 remains in the Manufacturing Overhead account.What impact will this have on the financial statements?

• A)It will increase assets by $4,000 and have no effect on income.
• B)It will increase income by $4,000.
• C)It will reduce income by $4,000.
• D)It will decrease gross profit but have no effect on income.

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Definitions:

Cumulative Relative Frequency

A calculation used in statistics to summarize data by accumulating percentages of observations in ascending order.

Proportion

A part or fraction of a whole, often expressed as a percentage or decimal.

Upper Limit

The maximum value in a range or set, beyond which no observations in the data set fall or are allowed.

Relative Frequency Distribution

A tabular summary of data showing the fraction or proportion of observations in each of several nonoverlapping categories or classes.