It Is Obvious That an Error Occurred in the Preparation

question 109

Multiple Choice

It is obvious that an error occurred in the preparation and/or posting of closing entries if:

• A) only permanent accounts appear on the post-closing trial balance.
• B) all balance sheet accounts have zero balances.
• C) the income summary account is debited for the amount of net income for the period.
• D) the owner's capital account is debited for the amount of the net loss for the period.
• E) all revenue and expense accounts have zero balances.

Identify and differentiate between direct materials and indirect materials within manufacturing costs.

Comprehend the composition and calculation of product costs.

Distinguish between different types of manufacturing costs, including factory overhead.

Recognize the three major cost components of a manufactured product.

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Definitions:

Pairwise Majority Voting

A voting system in which each option is compared head-to-head with every other option, with the option winning the most direct comparisons being considered the overall winner.

Condorcet Paradox

A situation in social choice theory where collective preferences can be cyclic (not transitive) despite the transitive preferences of individual voters.

Majority Rule

A decision-making principle where the preferences or decisions supported by more than half of the participants are adopted.

Transitive Preferences

A condition in decision-making where if an individual prefers option A over option B and prefers option B over option C, then the individual also prefers option A over option C.