In Accounting for Scrap, Which of the Following Statements Is

question 27

Multiple Choice

In accounting for scrap, which of the following statements is true?

• A) Normal scrap is accounted for separately from abnormal scrap.
• B) In accounting for scrap, there is no distinction between the scrap attributable to a specific job and scrap common to all jobs.
• C) Initial entries to scrap accounting records are most often made in dollar terms.
• D) Scrap records not only help measure efficiency, but also help keep track of scrap, and so reduce the chances of theft.

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Definitions:

Subscription Expense

Recurring costs associated with subscribing to a service or product on a regular basis.

Adjusting Entry

An accounting record made to update the value of an account to its true value and reflect expenses or revenues that have occurred but aren't yet recorded.

Account Form

A way of presenting a balance sheet where assets are on one side and liabilities and equity are on the other.

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders’ equity at a specific point in time.