Which of the Following Is the Proper Order of Accounts

question 31

Multiple Choice

Which of the following is the proper order of accounts in the chart of accounts?

• A)Assets, equity, liabilities, revenues
• B)Equity, assets, revenues, liabilities
• C)Liabilities, equity, revenues, assets
• D)Assets, liabilities, equity, revenues

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Definitions:

Finished Goods

Finished goods are products that have completed the manufacturing process and are ready to be sold to customers.

Overhead

Overhead refers to ongoing business expenses that are not directly tied to producing a specific product or service, such as rent, utilities, and administrative costs.

Underapplied

A situation where the allocated indirect costs are less than the actual indirect costs incurred.

Overapplied

A situation where the overhead costs applied to products or services exceed the actual overhead costs incurred.