John Contributed $6,000 to the Business by Opening a Bank

question 191

True/False

John contributed $6,000 to the business by opening a bank account in the name of the business,United Internists.This transaction results in an increase in the assets of the business.

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Definitions:

Flow Of Costs

Flow of Costs refers to the manner in which costs move through a company's accounts, typically beginning as inventory and transitioning through to the cost of goods sold.

Allocating And Assigning

The process of charging costs to cost objects or determining how costs should be divided and assigned to specific segments of a business.

Accumulating And Assigning

The process of gathering cost data and allocating it to specific products, services, or departments.

Raw Materials Inventory

The total cost of all the materials that are used in making a product but have not yet been converted into the finished product.