There Are Two Methods Used to Account for Transactions

question 23

Multiple Choice

There are two methods used to account for transactions.These methods are:

• A) cash and deferral
• B) cash and accrual
• C) accrual and deferral
• D) deferral and prepaid

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Definitions:

Factory Equipment

The machinery and tools used in the process of manufacturing goods, often considered as fixed assets in accounting.

Depreciation

The systematic allocation of the depreciable amount of a fixed asset over its useful life, representing the asset's wear and tear, deterioration, or obsolescence.

Product Cost

Refers to the total expenses incurred to manufacture a product, including direct labor, direct materials, and manufacturing overhead.

Checkout Clerk

An employee who is responsible for handling the final processing of transactions at the checkout counter of a retail store, including customer payment and bagging of items.