The Idea That an Increase or Decrease on One Side

question 52

Multiple Choice

The idea that an increase or decrease on one side of the accounting equation must be offset exactly by an increase or decrease on the other side of the accounting equation is called

• A) Additive concept
• B) Going concern assumption
• C) Monetary measurement concept
• D) Double-entry accounting

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit of material.

Cash Account

A financial account that tracks the money that is readily available for a company or individual, including physical currency and balances in bank accounts.

Raw Materials

The basic materials from which a product is made, often used in manufacturing processes.

Cash Account

An account that tracks the amount of cash transactions entering and leaving a business.