Which of the Following Is an Accounting Transaction

question 14

Multiple Choice

Which of the following is an accounting transaction?

• A) Make a purchase order.
• B) Establish a bank overdraft.
• C) Hire a new staff member.
• D) Sign a new contract.

Understand the relationship between market interest rates and bond prices.

Analyze the financial accounting entries for bond transactions, including issuance at a premium or discount.

Calculate the selling price and carrying value of bonds.

Understand the impact of issuing bonds at a discount or premium on the cost of borrowing.

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Definitions:

Direct Labor-Hours

The total hours worked by employees that are directly involved in the manufacturing process or providing a service, used in costing and operational efficiency analyses.

Direct Material

Primary raw materials directly incorporated into a finished product, an essential component in calculating the cost of goods sold.

Work in Process

Inventory that includes partially finished goods which are still in the production process.

Direct Materials Variances

The difference between the actual cost of direct materials used in production and the standard cost of those materials.