Which of the Following Are All Permanent Accounts

question 30

Multiple Choice

Which of the following are all permanent accounts?

• A) Cash, Rent Expense, owner's drawing
• B) Accumulated Depreciation, Notes Payable, owner's drawing
• C) Cash, Prepaid Insurance, Notes Payable
• D) Owner's capital, owner's drawing, Rent Expense

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Definitions:

Overapplied

Refers to a situation where the amount of overhead allocated to products or jobs is more than the actual overhead incurred.

Underapplied

Underapplied refers to a situation where the allocated costs are less than the actual costs incurred, often relating to overhead in manufacturing.

Direct Labor-Hours

A measure of the amount of time workers spend on production, often used as a basis for allocating overhead costs in traditional costing systems.

Applies Overhead

Refers to the method by which manufacturing overhead costs are assigned to products or job orders based on a predetermined rate or basis.