Match the Following Types of Adjustments with the Appropriate Transactions

question 251

Multiple Choice

Match the following types of adjustments with the appropriate transactions.
-Unearned revenue

• A)Used to record wages owed, but not yet paid.
• B)Used to record revenue earned for which cash was received in advance.
• C)Used to record revenue earned for which cash has not been received.
• D)Used to record expiration or use of prepaid insurance.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing beyond direct materials and direct labor, such as utilities, maintenance, and depreciation.

Prime Costs

The direct costs of manufacturing an item, which typically include direct labor and direct materials.

Factory Overhead Costs

Costs incurred from running a manufacturing plant that cannot be directly associated with any particular product, such as utilities, depreciation, and maintenance expenses.

Direct Materials

Raw materials that can be directly traced to the production of a specific product and are a significant portion of the production cost.