Proving the Equality of the Totals in the Columns of Multiple-Column

question 55

Multiple Choice

Proving the equality of the totals in the columns of multiple-column special journals is called

• A) posting to the subsidiary.
• B) debiting and crediting.
• C) footing and crossfooting.
• D) updating the master file.

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Definitions:

Perpetual Inventory System

A continuous tracking system for inventory that updates item counts after each sale or purchase, providing real-time inventory levels.

FIFO

An inventory valuation method where the first items purchased or produced are the first ones sold, standing for "First In, First Out."

Cost of Goods Sold

The immediate expenses related to creating a company's sold products, encompassing the price of materials and the labor specifically involved in manufacturing the item.

Gross Profit Inventory Method

An accounting method to estimate the value of ending inventory and cost of goods sold using the gross profit margin.