A Formal Account That Has Columns for Date, Explanation, Posting

question 48

Multiple Choice

A formal account that has columns for date, explanation, posting reference, debit, and credit is called the:

• A) T account.
• B) standard account form.
• C) ledger.
• D) chart of accounts.

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Definitions:

Purchases

The acquisition of goods or services by a company in exchange for money, which are either used in the process of production or sold to customers.

Total Direct Materials

The sum cost of all raw materials that are directly traceable to the manufacturing of a product.

Raw Materials Used

The total value of all raw materials employed in the manufacturing process to produce finished goods during a specific accounting period.

Manufacturing Overhead

All manufacturing costs that are not directly involved in the production of a product, including indirect materials, indirect labor, and other indirect costs.