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:

Copying

The act of reproducing or imitating another's work or behavior. In a new definition: An essential learning process involving the replication of patterns, behaviors, or information observed in others.

Defense Mechanism

Unconscious psychological strategies used to cope with reality and maintain self-image.

Rationalization

An ego defense mechanism in which one creates acceptable reasons for unwanted or undesirable behavior.

Intellectualization

A defense mechanism in which reasoning is used to block confrontation with an unconscious conflict and its associated emotional stress.