When Constructing a Worksheet Accounts Are Often Needed That Are

question 219

Multiple Choice

When constructing a worksheet accounts are often needed that are not listed in the trial balance already entered on the worksheet from the ledger. Where should these additional accounts be shown on the worksheet?

• A) They should be inserted in alphabetical order into the trial balance accounts already given.
• B) They should be inserted in chart of account order into the trial balance already given.
• C) They should be inserted on the lines immediately below the trial balance totals.
• D) They should not be inserted on the trial balance until the next accounting period.

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Definitions:

Cost of Goods Sold

The direct costs tied to the production of products sold by a company, including material and labor expenses.

Average Costs

The cost per unit calculated by dividing the total costs of production by the number of units produced.

Perpetual FIFO

An inventory management method where goods are sold in the order they are acquired, continuously updated to reflect sales and purchases.

Cost of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold in a company, including material and labor costs.