If Overapplied Factory Overhead Is Immaterial,the Account Is Closed by a Credit

question 63

True/False

If overapplied factory overhead is immaterial,the account is closed by a credit to Cost of Goods Sold.

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Definitions:

Liabilities

Liabilities are financial obligations a company owes to external parties, such as loans, accounts payable, and mortgages.

Accrual

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Accrual

The accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.

Accounting Cycle

The process used by entities to analyze and record transactions, adjust the records at the end of the period, prepare financial statements, and prepare the records for the next cycle.