Listed Below Are 5 Terms Followed by a List of Phrases

question 101

Multiple Choice

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Work-in-process

• A)Most recent purchases will be included in ending inventory.
• B)1 - (Cost of goods sold Net sales).
• C)Purchase discounts not taken are included in inventory.
• D)Products that are not yet complete.
• E)Purchase discounts not taken are considered interest expense.

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Definitions:

Sales

Revenue generated from goods or services sold by a company.

Direct Method

A cost allocation method that assigns service department costs directly to production departments without considering services provided between service departments.

Accounts Receivable

represents the money owed to a company by its customers for goods or services delivered but not yet paid for.

Prepaid Expenses

Payments made for goods or services before receiving them, recorded as assets in the balance sheet until they are utilized or consumed.