Which of These Accounts Would Appear in the Balance Sheet

question 118

Multiple Choice

Which of these accounts would appear in the Balance Sheet columns of the end-of-period spreadsheet?

• A) Consulting Revenue
• B) Prepaid Insurance
• C) Rent Expense
• D) Fees Earned

---

Definitions:

Conversion Costs

Costs in manufacturing that include both direct labor and overhead costs, specifically associated with the conversion of raw materials into finished goods.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services.

Factory Overhead

All indirect costs associated with manufacturing, such as utilities, depreciation, and maintenance, not directly tied to production.

Conversion Costs

The sum of labor costs and overhead expenses related to the transformation of materials into finished products.