Which of the Following Accounts Probably Would Have a Smaller

question 30

Multiple Choice

Which of the following accounts probably would have a smaller balance in the Adjusted Trial Balance columns of a work sheet than in the Trial Balance columns?

• A) Prepaid Advertising
• B) Wages Payable
• C) Accumulated Depreciation-Equipment
• D) Wages Expense

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Definitions:

Period Costs

Overheads that do not have a direct connection to the creation of products and are recorded as expenses in the timeframe they occur.

Traditional Format

In accounting, refers to the conventional presentation of financial statements, including the income statement that separates costs into fixed and variable categories.

Contribution Format

An income statement format that separates fixed costs from variable costs to show the contribution margin.

Merchandising Company

A business that purchases finished goods for resale, making a profit by selling them at a higher price than the cost.