Which of the Following Is Not Classified Properly as Property,plant,and

question 160

Multiple Choice

Which of the following is not classified properly as property,plant,and equipment?

• A)Land improvements,such as parking lots and fences
• B)Natural resources
• C)Land used in ordinary business operations
• D)A truck held for resale by an automobile dealership

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Definitions:

Debit

An entry recorded on the left side of an accounting ledger that increases an asset or expense account, or decreases a liability or equity account.

Credit

An accounting entry that increases liability or equity accounts, or decreases asset or expense accounts.

Underapplied Manufacturing Overhead

A situation where the actual manufacturing overhead costs are higher than the overhead costs applied to products based on the predetermined overhead rate.

Overapplied Manufacturing Overhead

Occurs when the allocated manufacturing overhead costs are more than the actual overhead costs incurred.