When Accounts Payable Is Credited, It Indicates

question 188

Multiple Choice

When Accounts Payable is credited, it indicates

• A) a decrease in the amount owed to creditors.
• B) an increase in the amount owed to creditors.
• C) an increase in the amount owed by customers.
• D) a decrease in the amount owed by customers.

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Definitions:

Weighted-Average Method

A costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during a period.

Process Costing

A costing method used in production where costs are assigned to processes and then averaged over all units produced.

Job-Order Costing

An accounting method that assigns costs to specific jobs or batches, used in industries where goods or services are produced on a custom basis.

Process Costing

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs, of a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production.