"Crediting" an Account I.increases an Asset Account

question 16

Multiple Choice

"Crediting" an account
I.increases an asset account.
II.increases a liability account.
III.could increase both an equity account and a liability account.

• A)I only
• B)II only
• C)I and II only
• D)II and III only

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Definitions:

Activity Cost Pools

Aggregations of all the costs associated with particular activities, used in activity-based costing to allocate costs more accurately.

Activity Measures

Metrics used to assess the efficiency and performance of different business activities, often in the context of activity-based costing.

Overhead Costs

Expenses not directly tied to the production of goods or services, such as rent, utilities, and insurance.

Overhead Costs

Expenses that are not directly tied to production activities, such as rent, utilities, and administrative expenses.