Tests of Details of Balances Are Directed To

question 66

Multiple Choice

Tests of details of balances are directed to:

• A) income statement accounts for all cycles.
• B) balance sheet accounts for all cycles.
• C) all general ledger accounts for all cycles.
• D) balance sheet accounts for some cycles and income statement accounts for other cycles.

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Definitions:

Predetermined Overhead Rate

A rate used to assign manufacturing overhead costs to products or job orders, calculated based on estimated overhead costs and an allocation base.

Direct Labor Cost

The total cost of work done by employees who are directly involved in the manufacturing of a product.

Work In Process Inventory

Work In Process Inventory consists of partially finished goods that are still undergoing manufacturing or production processes.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to individual units of production based on a particular activity base.