O'Hare Company Is a Manufacturing Firm That Uses a Job-Order

question 24

Multiple Choice

O'Hare Company is a manufacturing firm that uses a job-order costing system to determine the costs of its products.During the current accounting period,O'Hare recognized depreciation of $600 on manufacturing equipment.Which of the following describes the effect of this event on the accounting equation?

• A) Total assets and total equity are unaffected.
• B) Both total assets and total equities increase.
• C) Total assets and net income decrease.
• D) Total assets increase and net income increase.

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Definitions:

Experimenter Bias

The influence of the experimenter’s expectations on the outcome of research.

Double-Blind Experiment

An experimental design in which neither the experimenter nor the participants are aware of which participants are in the experimental group and which are in the control group until the results are calculated.

Experimental Group

The participants in an experiment who receive the drug or other treatment under study—that is, those who are exposed to the change that the independent variable represents.

Placebo Effect

A phenomenon in which a person experiences a physiological or psychological improvement after being given a treatment with no therapeutic value.