Argus Company Experienced an Accounting Event That Affected Its Financial

question 60

Multiple Choice

Argus Company experienced an accounting event that affected its financial statements as indicated below: $\begin{array}{|c|c|c|c|c|c|c|c|c|c|}\hline {\text { Assets }} & = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \\\hline \begin{array}{l|l} + & -\end{array}& &NA&&NA&NA&&NA&&NA \\\hline\end{array}$ Which of the following accounting events could have caused the indicated effects on the company's accounting equation?

• A) Applied manufacturing overhead to work in process
• B) Purchased raw materials for cash
• C) Paid cash wages of production workers
• D) All of these.

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Definitions:

Distributions

The payment of dividends or other assets to a company's shareholders as determined by the board of directors.

Management Rights

The rights retained by employers, allowing them to operate and manage their business without interference from the workforce.

Co-ownership

The state or condition where two or more parties hold property jointly, sharing rights and responsibilities.

Instrumentality

A term referring to a means or agency through which a function of another entity is accomplished.