Consider the Following Transactions

question 50

Multiple Choice

Consider the following transactions:
(i) repayment of a loan in June 2012
(ii) depreciation of equipment in June 2012
(iii) payment of accounts payable in June 2012
(iv) payment of an insurance bill in June 2012,which covers 1 July 2012 to 30 June 2013.
Which of the above transactions increase June 2012 expenses?

• A) (ii)only
• B) (i)and (ii)only
• C) (i),(ii)and (iii)only
• D) (i),(ii)and (iv)only
• E) (ii),(iii)and (iv)only.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Just-In-Time System

A production and inventory strategy where materials and products are produced or acquired only as needed for use, minimizing inventory costs.

Production Cost Report

A detailed report outlining the total cost involved in the production process including materials, labor, and overhead.

Production Quantity

The total amount of goods produced within a specific time frame, reflecting a company's output level.