A debit may signify a(n) a. decrease in asset accounts b. ...

[Mollykgkg]

A debit may signify a(n)
 a. decrease in asset accounts
  b. decrease in liability accounts
  c. increase in the capital account
  d. decrease in the drawing account

Question 2

When using a normal costing system, year-end accounting records will show that indirect costs are ________.
 
  Legal Advisory Inc., employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 2014:
 
   Budget Actual
   Indirect costs 270,000 300,000
   Annual salary of each attorney 100,000 110,000
   Annual salary of each paraprofessional  29,000  30,000
   Total professional labor-hours 50,000 dlh 60,000 dlh
 
  A) perfectly allocated
  B) underallocated
  C) within budget
  D) overallocated

[trampas]

Answer to Question 1

b

Answer to Question 2

Answer: D