A Contra-Asset Is ________

question 39

Multiple Choice

A contra-asset is ________.

• A)an amount that is deducted from an asset
• B)an amount that is added to an asset
• C)an amount that revalues an asset to fair market value as of the balance sheet date
• D)an amount that is classified as shareholders' equity

Understand the flow of costs in manufacturing accounts and how they affect financial statements.

Recognize the role of time tickets and machine hours in attributing costs to jobs.

Understand the treatment of underapplied or overapplied overhead in financial records.

Understand and apply the concept of predetermined overhead rates in the calculation of applied manufacturing overhead.

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Definitions:

Punishment

A consequence or penalty given in response to an undesired behavior, intended to decrease that behavior's occurrence.

Paycheck

The method by which employees receive wages or salary from their employer, typically in the form of a paper check or direct deposit.

Machine Cost

The expenses incurred in the operation and maintenance of a machine, including purchase price, installation, repairs, and running expenses.

A-B-C Analysis

A-B-C Analysis is a psychological approach that helps to understand the Antecedents, Behaviors, and Consequences of an action or event, commonly used in behavior modification.