Collection of an Account Receivable Would

question 85

Multiple Choice

Collection of an account receivable would:

• A)decrease liabilities.
• B)have no effect on owner's equity.
• C)decrease owner's equity.
• D)increase total assets.

---

Definitions:

Manufacturing Cost

The total expense incurred in the process of producing goods, including materials, labor, and overhead.

Selling Prices

The amount of money charged for a product or service, determined by cost, competition, and market demand.

Unit Product Cost

The sum of materials, labor, and overhead expenses divided by the quantity of units manufactured.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the production process begins.