Which of the Following Is Not True

question 85

Multiple Choice

Which of the following is not true?

• A)The imprest petty cash system in effect adheres to the rule of disbursement by check.
• B)Entries are made to the Petty Cash account only to increase or decrease the size of the fund or to adjust the balance if not replenished at year-end.
• C)The Petty Cash account is debited when the fund is replenished.
• D)All of these are not true.

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Definitions:

Manufacturers

Manufacturers are entities engaged in the transformation of raw materials or components into finished goods that are sold to consumers, businesses, or other manufacturers.

Product Costs

The total expenses incurred to produce a product including direct materials, direct labor, and manufacturing overhead.

Period Costs

Expenses that are not directly tied to the production process and are instead charged to the periods in which they are incurred, such as sales and administration expenses.

Work in Process Inventory

Work in process inventory consists of goods partially completed, not yet ready for sale, representing the cost of raw materials, labor, and overhead involved in production.