Using the Following Accounts

question 99

Multiple Choice

Using the following accounts:
Indicate the account(s) to be debited and credited to record the following transaction.
-Exchanged common stock for services of corporation organizers (valued at par) .
Debit ________ Credit ________

• A)Subscription receivable-common stock
• B)Cash
• C)Machinery
• D)Building
• E)Land
• F)Organization costs
• G)Preferred stock
• H)Common stock
• I)Paid in capital in excess of par value - common
• J)Paid in capital in excess of par value - preferred
• K)Common stock subscribed
• L)Discount on common stock
• M)Organization Expense

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Definitions:

Measure Of Activity

A parameter or unit used to quantify the level of operational or production activity within a specific period.

Product Margin

Product Margin is the difference between the selling price of a product and the costs associated with its production and sale, showcasing the profitability of specific products.

Activity Cost Pools

Groups of costs associated with particular activities, used in activity-based costing to allocate costs more precisely.

Activity-based Costing

An accounting method that assigns costs to products based on the activities performed in producing that product, providing more accurate product costing.