As Used in Defining the Modified Accrual Basis of Accounting

question 67

Multiple Choice

As used in defining the modified accrual basis of accounting, the term "available" means

• A) received in cash.
• B) will be received in person within 60 days after year-end.
• C) collection in cash is reasonably assured.
• D) collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period.

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Definitions:

Process Costing

An accounting method used where identical or similar products are mass-produced, assigning average costs to each unit based on the total costs of production divided by the number of units produced.

Job Order Costing

A costing system used to accumulate costs for individual jobs or orders, typically used in industries where products are customized.

Job Cost Sheets

A document used in manufacturing to record the costs associated with a specific job or order, including materials, labor, and overhead.

Work in Process Inventory

Goods and materials that are in the process of being manufactured but are not yet finished products.