Which of the Following Accounts Is an Asset

question 143

Multiple Choice

Which of the following accounts is an asset?

• A) Cash
• B) Notes payable
• C) Drawing
• D) Expenses

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Definitions:

Underapplied Overhead

A situation where the allocated manufacturing overhead cost is less than the actual overhead incurred.

Direct Labor Costs

Expenses associated with the work directly done by employees on the company's products or services.

Job Order Costing

An accounting system that accumulates costs by individual jobs or orders, suitable for customized or distinct products and services.

Predetermined Overhead Rate

The rate estimated before the start of a period, used to allocate manufacturing overhead costs to products based on a chosen activity base.