The Recording of the Factory Labor Incurred for General Factory

question 163

Multiple Choice

The recording of the factory labor incurred for general factory use would include a debit to

• A) Factory Overhead
• B) Wages Payable
• C) Wages Expense
• D) Cost of Goods Sold

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Definitions:

Privity of Contract

A legal concept stating that only the parties to a contract have the right to sue each other to enforce the terms of that contract.

Supreme Court Decision

A ruling issued by the Supreme Court, which is the highest court in many countries, setting a legal precedent.

Trust

A provision in equity whereby one person transfers property to a second person obligated to use it to the benefit of a third person.

Involuntary Assignment

Assignment of rights that takes place involuntarily, as in the cases of death and bankruptcy.