In the Flow of Inventory and Costs, When Work-In-Progress Is

question 122

Multiple Choice

In the flow of inventory and costs, when work-in-progress is credited, ________ is (are) debited.

• A) raw materials
• B) cost of goods sold
• C) finished goods
• D) direct labor

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Definitions:

Permanent Accounts

Balance sheet accounts whose balances are carried forward to the next accounting period, including assets, liabilities, and equity accounts.

Temporary Accounts

Accounts that track financial results for a specific period before being reset by transferring the balance to permanent accounts, including revenue, expense, and dividend accounts.

Trial Balance

A bookkeeping worksheet where the balances of all ledgers are compiled into debit and credit columns to ensure accuracy in the accounts.

Additional Accounts

Accounts that are created to track or manage specific financial transactions not covered by the standard set of accounts.