If a Company Has Excess Space in Its Building That

question 30

Multiple Choice

If a company has excess space in its building that it rents to another company for $700,what is the effect on the accounting equation when the first rent payment is collected?

• A)Assets would decrease $700 and liabilities would decrease $700.
• B)Assets would decrease $700 and equity would increase $700.
• C)Assets would increase $700 and equity would decrease $700.
• D)Assets would increase $700 and equity would increase $700.
• E)Liabilities would decrease $700 and equity would increase $700.

Understand and identify components of manufacturing overhead.

Calculate cost of goods manufactured.

Analyze the relationship between cost of goods sold, cost of goods manufactured, and inventory levels.

Understand the behavior and classification of costs including variable, fixed, direct, and indirect costs.

---

Definitions:

Procedural Justice

The degree to which rules are always properly followed to implement policies.

Sexual Harassment Complaint

Refers to a report made by an individual alleging unwanted and inappropriate sexual advances or remarks in the workplace.

Instrumentality

In organizational psychology, the perceived relationship between performance and the attainment of certain outcomes.

Performance Accomplishment

Achieving specific goals or standards of work that are recognized as an indicator of competence.