Bank Errors

question 90

Multiple Choice

Bank errors

• A)occur because of time lags.
• B)must be corrected by debit memorandums.
• C)are infrequent in occurrence.
• D)are corrected by making an adjustment on the depositor's books.

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Definitions:

Cost of Goods Sold

Direct expenditures involved in the manufacture of products a business sells, such as labor and materials.

Fixed Overhead Variances

The difference between actual fixed overhead costs and the standard or budgeted fixed overhead costs.

Direct Materials

Direct materials are raw materials that are directly incorporated into a finished product and are an essential part of the manufacturing process.

Direct Labor

The labor costs associated with employees who are directly involved in the manufacturing of products or provision of services.