A Returned Asset Should Be Recorded

question 99

Multiple Choice

A returned asset should be recorded

• A) as a direct reduction to inventory.
• B) in a separate account from inventory.
• C) at the same value it was sold for, without considering impairment.
• D) Silly question, returned assets aren't recorded.

---

Definitions:

Selling and Administrative Expenses

Costs associated with the selling of products and the management of the business.

Fixed Overhead

The total non-variable costs associated with operating a business, including rent, salaries, and insurance, that remain unchanged regardless of the level of production or sales.

Direct Labor

The wages and other forms of remuneration paid to employees who directly work on the products being manufactured, such as assembly line workers.

Property, Plant, and Equipment

Long-term tangible assets used in the operation of a business, such as buildings, machinery, and equipment.