If a Transaction Causes an Asset Account to Increase,which of the Following

question 59

Multiple Choice

If a transaction causes an asset account to increase,which of the following effects of equal amount may also occur?

• A)A decrease in a liability account
• B)An increase in another asset account
• C)A decrease in an equity account
• D)An increase in a liability account

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Definitions:

Equivalent Unit

A concept used in cost accounting to express the amount of work done by incomplete units in terms of fully completed units.

Weighted-Average Method

An approach to inventory valuation where the cost of goods sold and ending inventory figures are derived from the average cost of all units on sale during that interval.

Process Costing System

A system of accounting used in manufacturing environments where products are mass-produced and costs are accumulated over a period, rather than per job.

Processing Department

A division within a factory where a specific stage of production is completed, often involving a particular set of processes or operations.