For Each of the Following Accounts, Indicate What Event Causes

question 36

Essay

For each of the following accounts, indicate what event causes the account to increase and to decrease. The answer is not debit or credit.
$$\begin{array} { | l | l | l | } \hline \text { Account } & \text { Is increased by: } & \text { Is decreased by: } \\\hline \text { Raw Materials } & & \\\text { Inventory } & & \\\hline \text { Work-in-Process } & & \\\text { Inventory } & & \\\hline \text { Finished Goods } & & \\\text { Inventory } & & \\\hline \text { Cost of Goods Sold } & & \\\hline\end{array}$$

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Definitions:

Business Transactions

The exchange of goods, services, or funds between two or more parties in a commercial context.

Customer's Expectations

The beliefs or standards that customers have regarding the quality, performance, and value of a product or service.

Repairing Damage

The process of fixing or restoring something that has been broken, harmed, or impaired.

Modifying

The act of making changes or alterations to something, often to improve it or to adjust it to different conditions.