When a Transaction Occurs in a Business, the Accountant Must

question 95

Multiple Choice

When a transaction occurs in a business, the accountant must decide if it is a regular and recurring transaction.If the transaction IS regular and recurring, it will be recorded in a ____1_____.If it is NOT regular and recurring, it will be recorded in a _____2_____.

• A)1=General journal; 2=Special journal
• B)1=General ledger: 2=Special ledger
• C)1=Special journal; 2=General Journal
• D)1=Special journal; 2=Subsidiary Ledger

Recognize the varied types of powers of attorney and their legal implications.

Comprehend the duties and obligations of agents towards their principals, including the duty of performance and obedience.

Understand the legal liabilities of agents in contractual and transactional contexts.

Identify the rights and remedies available to agents and principals in agency relationships, including compensation, reimbursement, and specific performance.

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Definitions:

Production Department

A production department is a specialized unit within a manufacturing firm that is responsible for the process of converting raw materials into finished goods.

Allocated Per Unit

The process of assigning a portion of total costs directly to individual units of production or service.

Plantwide Factory Overhead Rate

A single overhead absorption rate used throughout an entire plant or factory to allocate overhead costs to products.

Activity-based Costing

An accounting method that assigns costs to products and services based on the activities and resources that go into creating them, aiming for more accurate costing.