Which of the Following Is Not an Example of an Accounting

question 26

Multiple Choice

Which of the following is not an example of an accounting error,as distinguished from a change in accounting principle or change in accounting estimate?

• A) Misstatement of assets,liabilities,or owners' equity
• B) Incorrect classification of an expenditure as between expense and an asset
• C) Failure to recognize accruals and deferrals
• D) Recognition of a gain on disposal of fully depreciated property

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Definitions:

Work In Process Inventory

Components, raw materials, and labor costs associated with partially completed goods during the manufacturing process.

Direct Labor

The wages paid to workers directly involved in the production of goods or services.

Overhead

The ongoing operational costs not directly attributable to the creation of a product or service.

General Journal

A comprehensive journal used in bookkeeping to record all types of accounting transactions before their transfer to specific accounts in the ledger.