Examples of Liabilities Include

question 7

Multiple Choice

Examples of liabilities include:

• A) accounts payable and accounts receivable.
• B) accounts payable and land.
• C) investments and owners' equity.
• D) accounts payable and long-term debt.

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Definitions:

Equivalent Units

A method used in process costing that converts partially completed goods into a number of completed units of output.

Assembly Department

An area in a manufacturing plant where parts are put together to create finished goods.

Conversion Costs

These are the costs required to convert raw materials into finished products, comprising labor and overhead expenses.

Materials Costs

Expenses incurred for materials that are directly associated with manufacturing a product.