Which of the Following Is Correct Concerning the Number of Work

question 39

Multiple Choice

Which of the following is correct concerning the number of Work in Process accounts used by job-order and process cost systems?

• A)job-order = several; process cost = one
• B)job-order = one control account for each job; process cost = one for each process
• C)job-order = one control account; process cost = one for each process
• D)job-order = none; process cost = several

---

Definitions:

Transposition

The error of switching the order of digits in numbers, often leading to inaccuracies in financial or data records.

General Ledger

A comprehensive record of all financial transactions over the life of a company, used to prepare financial statements.

Nominal Account

An accounting ledger account that starts each new accounting period with a zero balance and ends with a closed balance to transfer to a real account.

Retained Earnings

Retained Earnings represent the cumulative amount of net income earned by a company that has not been distributed to shareholders as dividends.