A Transaction That Credits an Asset Account and Credits a Liability

question 6

True/False

A transaction that credits an asset account and credits a liability account must also affect one or more other accounts.

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Definitions:

Cost Driver

A factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs.

Indirect Materials

Small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily or conveniently traced to it.

Machine Hours

A measure of the total time that production equipment is operational, used to allocate machine-related expenses to products.

Cost Behaviour

The characteristic of costs that they either remain stable or change in response to variations in business activity levels.