Which of the Following Accounts Is Classified Differently from the Others

question 201

Multiple Choice

Which of the following accounts is classified differently from the others listed?

• A) Accounts Receivable
• B) Retained Earnings
• C) Prepaid Rent
• D) Cash

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Definitions:

Conversion Costs

These are the combined costs of direct labor and manufacturing overhead that are incurred to convert raw materials into finished goods.

Equivalent Units

A concept used in cost accounting to express the amount of work done on unfinished goods in terms of completed units of output.

Labor

The work performed by humans that is used in the production of goods and services.

Equivalent Units

Equivalent units, in managerial accounting, are a concept used in process costing that represents the amount of work done during a period in terms of fully completed units of output.