Randomly Listed Below Are the Steps for Preparing a Trial

question 184

Multiple Choice

Randomly listed below are the steps for preparing a trial balance: (1) Verify that the total of the Debit column equals the total of the Credit column.
(2) List the accounts from the ledger and enter their debit or credit balance in the Debit or Credit column of the trial balance.
(3) List the name of the company, the title of the trial balance, and the date the trial balance is prepared.
(4) Total the Debit and Credit columns of the trial balance.​What is the proper order of these steps?

• A) (3), (2), (4), (1)
• B) (2), (3), (4), (1)
• C) (3), (2), (1), (4)
• D) (4), (3), (2), (1)

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Definitions:

Fabrication Department

A specialized division within a company responsible for the manufacturing and assembly of products or components.

Weighted-Average Method

A technique for calculating the cost of goods sold and remaining stock that uses the mean cost of all available units for sale.

Conversion Cost

The total cost of converting raw materials into finished goods, encompassing both labor and manufacturing overhead expenses.

Process Cost System

An accounting methodology used for homogeneous products, where the cost of producing each item is the same as the others, accumulating costs over a set period and dividing by the number of units produced.