When a Trial Balance Is Prepared,a Contra-Account Appears Immediately

question 14

Multiple Choice

When a trial balance is prepared,a contra-account appears immediately:

• A)before the account it offsets but in the opposite column.
• B)after the account it offsets and in the same column.
• C)after the account it offsets but in the opposite column.
• D)before the account it offsets and in the same column.

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Definitions:

Perpetual Inventory Records

This is an inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Direct Materials

Raw materials that are traceable to the manufacturing of a product and are an integral part of the finished product.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the period begins based on estimated costs and activity levels.

Direct Materials Used

Direct Materials Used are raw materials that are directly incorporated into a finished product and are a major part of manufacturing costs.