Answer:
Option (D) is the right answer.
Explanation:
According to the question, customized production is the most appropriate answer because job order production refers to the manufacturing process which is unique & customized according to the customer's needs.
While the other options are wrong because of the following reasons:
- Mass production can be described as a large number of production for the same product.
- Process production can be defined as the production which takes place through a similar process for all the products.
- Unit production can be defined as the number of production of the items.
- Standard costing can be defined as the costing which occurs on the production of the product.
Hence the most appropriate answer is option (D).
Answer:
d. Assets - Liabilities = Stockholders' Equity.
Explanation:
The principle of double entry booking rests upon the accounting equation. the accounting equation states that (where correct and accurate accounting books are kept), the total asset of a corporation must equal the addition of the corporation's total liabilities and Stockholders' equity.
The following is the basic formula for accounting equation
Assets = Liabilities + Stockholders' equity
Rearranging the above basic equation, we have the alternative form of the accounting equation.
Assets = Liabilities + Stockholders' equity
Subtract Stockholders' equity from both sides of the equation
Assets - Stockholders' equity = Liabilities + Stockholders' equity -
Stockholders' equity
Assets - Liabilities = Stockholders' equity
Explanation:
The adjusting entry is shown below:
Insurance expense Dr $1,800
To Prepaid insurance $1,800
(Being the insurance expense is recorded)
For recording the adjusting entry for advance purchase of insurance policy we debited the insurance expense and credited the prepaid insurance account so that the correct posting could be done
