Which of the Following Accounts Is an Asset

question 15

Multiple Choice

Which of the following accounts is an asset?

• A) Salaries Expense
• B) Accounts Payable
• C) Service Revenue
• D) Prepaid Expense

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Definitions:

Conversion Costs

Conversion costs are the expenses incurred to convert raw materials into finished goods, typically including labor and overhead costs.

Process Costing

An accounting methodology used for assigning production costs to units of output, particularly suitable for continuous production processes.

Cost Per Equivalent Unit

The total production cost divided by the number of equivalent units produced, used to assign costs in process costing.

Materials Cost

The cost of materials directly used in the production of goods.