The Methods and Procedures for Collecting, Classifying, Summarizing, and Reporting

question 124

True/False

The methods and procedures for collecting, classifying, summarizing, and reporting a business's financial and operating information are called the accounting system.

---

Definitions:

Credit Sales

Sales made by a business where payment is not received at the time of sale but is instead deferred to a later date.

Raw Materials Purchases

The total cost incurred to buy raw materials that are to be used in the production process.

Raw Materials Inventory

The total cost of all components and materials stored that are eventually used in the manufacture of a product.

Master Budget

A comprehensive financial planning document that includes all of the organization's financial plans.