An Account Is Increased by a Debit and Has a Normal

question 48

Multiple Choice

An account is increased by a debit and has a normal balance of a debit. This account is:

• A)an expense account.
• B)a liability account.
• C)an asset account.
• D)both an expense account and an asset account.

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Definitions:

Cost Allocated

The amount of indirect costs assigned to cost objects based on certain criteria or cost drivers.

Assembly Department

A section within a manufacturing process where pieces are put together to form a component or a finished product.

Fixed Overhead Rate

A consistent charge that does not fluctuate with the level of output or activity in a given period, used to allocate fixed costs to units of output.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and overhead) in the cost of a product.