During March, Zea Incorporated Transferred $50,000 from Work in Process

question 308

Multiple Choice

During March, Zea Incorporated transferred $50,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $56,000. The journal entries to record these transactions would include a:

• A) credit to Cost of Goods Sold of $56,000.
• B) debit to Finished Goods of $56,000.
• C) credit to Work in Process of $50,000.
• D) credit to Finished Goods of $50,000.

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Definitions:

Limited Partnership

A business structure with at least one general partner who manages the business and assumes unlimited liability, and one or more limited partners who provide capital and have limited liability.

Limited Partnership

A partnership structure where at least one partner has unlimited liability (general partner) and one or more partners have limited liability (limited partners), restricting their losses to their investment in the partnership.

Limited Liability Partnership

A business structure where partners have limited liabilities, protecting personal assets from the debts of the business.

Sole Proprietorship

A sole proprietorship is a business owned and operated by a single individual, where there is no legal separation between the owner and the business entity.