Langdon Company Experienced an Accounting Event That Affected Its Financial

question 28

Multiple Choice

Langdon Company experienced an accounting event that affected its financial statements as indicated below: $$\begin{array} { | c | c | c | c | c | c | c | c | c | c | } \hline \text { Assets } & = & \text { Liabilities } & + & \text { Equity } & \text { Revenue } & - & \text { Expense } & = & \text { Net income } \\\hline ( 250 ) & = & n / \mathrm { a } & + & ( 250 ) & \mathrm { n } / \mathrm { a } & - & 250 & = & ( 250 ) \\\hline\end{array}$$ Which of the following transactions could have caused the indicated effects on the company's accounting equation?

• A) Goods transferred from work in process to finished goods.
• B) Allocation of underapplied overhead to cost of goods sold.
• C) Collection of account receivable.
• D) Allocation of overapplied overhead to cost of goods sold.

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Definitions:

Polarization

The process or phenomenon by which opinions, attitudes, or behaviors become more extreme or divided among members of a group or society.

Static Evaluation

The tendency to view people or situations as unchanging, ignoring the dynamic nature of reality.

Bypassing

refers to a communication problem where the same words or phrases are interpreted differently by different people, leading to misunderstandings and a breakdown in communication.

Supportive Climate

An environment, either in the workplace or personal relationships, that fosters open, honest, and respectful communication.