All the Accounts in an Accounting System Can Be Classified $\underline{\quad\quad}$

question 30

Short Answer

All the accounts in an accounting system can be classified broadly as either:
A. Income statement accounts.
B. Statement of financial position accounts.

Below are listed some other classifications of accounts. You are to identify them with the above classifications by entering either A or B to the left of each.

$\underline{\quad\quad}$ 1. Temporary accounts.
$\underline{\quad\quad}$ 2. Not closed at the end of the accounting period.
$\underline{\quad\quad}$ 3. Permanent accounts.
$\underline{\quad\quad}$ 4. Closed at the end of the accounting period.

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Definitions:

Conversion Costs

Costs associated with converting raw materials into finished products, which typically include both direct labor costs and manufacturing overhead costs.

Factory Overhead Costs

Indirect costs associated with manufacturing, including expenses related to running the factory but not directly traceable to individual products.

Indirect Labor Costs

The expense associated with labor that supports but does not directly contribute to the production or provision of services.

Selling Costs

Expenses related to the sale of products or services, including advertising, sales commissions, and store expenses.