In Process Costing There Is Never a Balance Remaining in Factory

question 82

True/False

In process costing there is never a balance remaining in Factory Overhead that needs to be closed at period end.

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Definitions:

Trial Balance

A trial balance is a bookkeeping report showing the balances of all ledgers accounts to ensure that debits equal credits.

Double-Entry System

An accounting technique that records each transaction as both a debit and a credit in different accounts, ensuring the accounting equation remains balanced.

Transaction

Any event or activity that affects the financial position of a company and can be measured reliably in monetary terms.

Accounts

Records that summarize all the transactions related to a specific financial aspect, such as assets, liabilities, equity, expenses, and income.