Closing Entries May Be Prepared from All but Which One

question 110

Multiple Choice

Closing entries may be prepared from all but which one of the following sources?

• A) Adjusted balances in the ledger
• B) Income statement and balance sheet columns of the worksheet
• C) Balance sheet
• D) Income and owner's equity statements

---

Definitions:

Machine-Hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and activity bases.

Machining Department

A specific section within a manufacturing facility where machining processes such as cutting, drilling, or milling are performed.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, often based on a specific activity base.

Direct Labor-Hours

The total hours of labor directly worked on the production of goods or services, used as a basis for assigning labor costs.