The Composite Balance of Individual Accounts in the Accounts Payable

question 118

Multiple Choice

The composite balance of individual accounts in the accounts payable subsidiary ledger must

• A) equal the composite balance of the individual accounts in the accounts receivable subsidiary ledger.
• B) always be zero.
• C) equal the balance of the accounts payable account in the general ledger.
• D) agree with the total of the Accounts payable column in the cash receipt journal.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including costs related to utilities, maintenance, and factory equipment.

Direct Labour Costs

Costs that are directly attributed to the production of goods or services, including wages and salaries of workers who physically produce the items.

Manufacturing Overhead Costs

Expenses related to the production process that are not directly tied to a specific product, including rent, utilities, and salaries of management.

Work in Process

Goods that are in various stages of the production process but are not yet complete.