The Accounts Receivable Ledger

question 25

Multiple Choice

The accounts receivable ledger:

• A) Is also the controlling account.
• B) Stores transaction data for individual creditors.
• C) Is a substitute for the sales journal.
• D) Is a substitute for the cash receipts journal.
• E) Stores transaction data for individual customers.

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Definitions:

Equivalent Units

A concept used in cost accounting to represent the partial completion of goods in production, expressed in terms of fully completed units.

Molding Department

A specialized section in a manufacturing facility where raw materials are shaped into components through the molding process.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.

Equivalent Units

A concept in cost accounting used to compute the costs associated with partially completed goods.