In Published Annual Reports

question 100

Multiple Choice

In published annual reports

• A) subdivisions within the stockholders' equity section are routinely reported in detail.
• B) capital surplus is used in place of retained earnings.
• C) the individual sources of additional paid-in capital are often combined.
• D) retained earnings is often not shown separately.

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Definitions:

Weighted-Average Method

A method for computing the cost of goods sold and the remaining inventory value that uses the mean cost of all available units.

Process Costing System

An accounting system used for homogenous products that are mass-produced, assigning costs to units of product based on the process they go through.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, expressing the work done in terms of fully completed goods.

Weighted-Average Process

A method of accounting for inventory and production costs that averages costs over the units produced during a period, widely used in process manufacturing.