Compare the List of Accounts Below and Choose the List

question 212

Multiple Choice

Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.

• A)Accounts Payable; Cash; Supplies.
• B)Unearned Revenue; Accounts Payable; Dividends.
• C)Building; Prepaid Insurance; Supplies Expense.
• D)Cash; Prepaid Insurance; Equipment.
• E)Notes Payable; Cash; Dividends.

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Definitions:

Budgeted Costs

Predicted financial expenditures that a company plans to incur during a specific period for various activities or projects.

Direct Costs

Costs that are directly attributable to the production of goods or provision of services, such as raw materials and direct labor.

Indirect Costs

Costs that are not directly attributable to the production of goods or services and cannot be traced back to a single product, service, or project, such as rent and utilities.

Responsibility Accounting System

An accounting framework that tracks financial performance by specific areas of responsibility, such as departments or managers.