Which of the Following Would Start with a 1 in the Chart

question 25

Multiple Choice

Which of the following would start with a 1 in the chart of accounts?

• A) Land and buildings
• B) Depreciation expense and marketing expense
• C) Merchandise sales and rent revenue
• D) Common shares and cash
• E) Accounts Payable and Notes Payable

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Definitions:

Expected Future Costs

Projected expenses that a company anticipates incurring in the pursuit of its future activities.

Unavoidable Waste

Waste that cannot be prevented due to the nature of the production process or operational constraints.

Normal Spoilage

The expected or inevitable waste and inefficiency in production processes that is considered acceptable.

Ideal Standard

A benchmark for optimal efficiency under perfect operating conditions, used in variance analysis to set performance goals.