Which of the Following Transactions Would Cause One Asset to Increase

question 91

Multiple Choice

Which of the following transactions would cause one asset to increase and another asset to decrease?

• A)The owner invested cash in the business.
• B)The business paid a creditor.
• C)The business incurred an expense on credit.
• D)The business bought supplies for cash.

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Definitions:

Past Cost Data

Historical financial information on the costs associated with production, operations, or projects, used for planning and analysis.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Production Methods

Various techniques and processes used in the creation of goods and services, ranging from manual labor to advanced manufacturing technologies.

Standard Cost Systems

Accounting systems that use standards for each element of manufacturing cost entering into the finished product.