The Balance Sheet Is Composed of the Following Types of Accounts

question 285

Multiple Choice

The balance sheet is composed of the following types of accounts:

• A) revenue, expenses, and earnings.
• B) operating expenses, cash flow, and capital expenditures.
• C) capital, cost, and valuation.
• D) assets, liabilities, and owners' equity.

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Definitions:

Manufacturing Overhead Applied

The process of assigning manufacturing overhead costs to the units produced, based on a predetermined overhead rate.

Work in Process Account

An inventory account that tracks the costs of products in various stages of completion but not yet finished.

Manufacturing Overhead

The indirect costs associated with manufacturing, exclusive of direct materials and direct labor expenses, necessary to produce goods.

Allocation Base

A criterion or measure used for allocating costs to cost objects, based on factors such as time, output, or activity level.