Which of the Following Is NOT Considered to Be an Accounting

question 43

Multiple Choice

Which of the following is NOT considered to be an accounting error?

• A) changing from the cash basis to the accrual basis
• B) expensing the cost of a new machine
• C) changing depreciation methods from declining balance to straight line
• D) failing to accrue wages payable at year end

Identify various elements of employee compensation beyond wages and salaries.

Understand the benefits of flexible benefit packages, including tax advantages.

Know the best practices for hiring family members according to Peter Drucker.

Be aware of the rules and limits concerning individual retirement accounts (IRAs).

---

Definitions:

Factory

A building or group of buildings where goods are manufactured or assembled chiefly by machine.

Work in Process

A part of the inventory account on the balance sheet that represents goods in various stages of production but not yet completed.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end customer.

Goods Sold

Represents the total quantity of goods that have been sold to customers during a specific accounting period.