What Would Be an Appropriate Account Number for Cash

question 108

Multiple Choice

What would be an appropriate account number for Cash?

• A) 11
• B) 21
• C) 31
• D) 41

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Definitions:

Averaging Process

A method used in manufacturing or cost calculation where inputs or expenses over a period are averaged to determine a standard cost or value.

Absorption Costing

A cost accounting method that includes all manufacturing costs—direct materials, direct labor, and both fixed and variable manufacturing overhead—in the cost of a product.

Nonmanufacturing Costs

Expenses not directly related to the production of goods, such as selling, general, and administrative expenses.

Job-Order Costing

An accounting method that tracks costs individually for each job, suitable for manufacturing operations that produce goods based on specific customer orders.