Which of the Following Accounts Is Debited When Goods Are

question 40

Multiple Choice

Which of the following accounts is debited when goods are sold?

• A) Finished Goods
• B) Overhead Control
• C) Raw Materials
• D) Cost of Goods Sold
• E) Sales Revenue

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Definitions:

Goodwill Impairment

An accounting charge that occurs when the market value of goodwill is less than its recorded value on the balance sheet.

Plant and Equipment

Long-term tangible assets used in the operations of a business to produce goods and services, such as machinery, buildings, and vehicles.

Exchange Gain/Loss

The gain or loss resulting from changes in exchange rates affecting foreign currency transactions.

Exchange Rates

A measurement of the value of one currency expressed in terms of another currency.