In Which of the Following Types of Accounts Are Increases

question 40

Multiple Choice

In which of the following types of accounts are increases recorded by credits?

• A) revenues, liabilities
• B) dividends, assets
• C) liabilities, dividends
• D) expenses, liabilities

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Definitions:

Level of Activity

A measure used in accounting and production to determine the extent to which a business operation is being utilized, often influencing cost behavior.

Direct Materials Cost

The cost of materials that are an integral part of the finished product.

Units Produced

The total number of units of product a company manufactures over a specific period of time.

Fixed Cost

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.