Adjusting Entries

question 161

Multiple Choice

Adjusting entries

• A) Affect only income statement accounts
• B) Affect only balance sheet accounts
• C) Affect both income statement and balance sheet accounts
• D) Affect only statement of cash flows accounts
• E) Affect only equity accounts

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Definitions:

Job Cost Sheets

A document or record that captures all costs associated with a specific job or project, allowing for more precise tracking and billing.

Unit Cost Trends

Analysis of how the cost required to produce a single unit of a product changes over time, which can indicate efficiency improvements or the need for adjustments in pricing strategies.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making small, incremental changes over time.

Direct Materials Price

The cost per unit of raw materials that are used directly in the production of goods.