Factory Rent and Utilities Are Debited to The

question 24

Multiple Choice

Factory rent and utilities are debited to the:

• A)concerned Work-in-Process Inventory account.
• B)Manufacturing Overhead account.
• C)Finished Goods Inventory account.
• D)Cost of Goods Sold account.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.

Liquidity

A measure of how easily assets can be converted into cash without affecting their market price.

Accounts Receivable

Denotes the funds that customers owe a business for received goods or services that remain unpaid.

Notes Receivable

Claims held by a creditor that are supported by promissory notes, representing a right to receive payments from debtors.