Which of the Following Entries Is NOT an Example of Asset

question 22

Multiple Choice

Which of the following entries is NOT an example of asset consumption,recognised over future time periods?

• A) Dr Salaries expense Cr Cash
• B) Dr Depreciation expense Cr Accumulated depreciation
• C) Dr Insurance expense Cr Prepaid insurance
• D) Dr Cost of goods sold Cr Inventory

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Definitions:

Marginal Productivity

The additional output resulting from a one-unit increase in the input of a particular factor of production, while holding other inputs constant.

Labor Demand Curve

A curve representing the quantity of labor that employers wish to hire at different wage rates.

Technological Advances

Innovations and improvements in technology that enhance efficiency, productivity, or quality in goods and services.

World Price

The price of a good that prevails in the world market for that good.