Debits

question 202

Multiple Choice

Debits

• A) decrease both assets and liabilities.
• B) decrease assets and increase liabilities.
• C) increase both assets and liabilities.
• D) increase assets and decrease liabilities.

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Definitions:

Materials

Raw inputs or components used in the manufacturing or production process to create a final product.

Equivalent Unit

A concept used in cost accounting to express the amount of work done by incomplete units in terms of fully completed units.

Weighted-Average Method

An approach to inventory valuation where the cost of goods sold and ending inventory figures are derived from the average cost of all units on sale during that interval.

Process Costing System

A system of accounting used in manufacturing environments where products are mass-produced and costs are accumulated over a period, rather than per job.