Answered: salary to an employee just hired b.…

Business

Accounting

salary to an employee just hired b. Setting up of chart of accounts c. Payment of rent in advance

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 2EB: For each of the following accounts, identify whether it is nominal/temporary or real/permanent, and...

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

100%

Which of the following is nonbusiness transaction?

a. Payment of advance salary to an employee just hired

b. Setting up of chart of accounts

c. Payment of rent in advance

d. Receipt of electricity bill

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