Adjusting Entries Are Used To

question 20

Multiple Choice

Adjusting entries are used to:

• A)Close temporary accounts at year end
• B)Close permanent accounts at year-end
• C)Bring account balances up to date at year end
• D)All of these

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Definitions:

Board Feet

A unit of measure for the volume of lumber, equivalent to a piece of wood one foot long, one foot wide, and one inch thick.

Direct Materials Quantity Variance

The difference between the expected and actual quantity of materials used in production, multiplied by the standard cost per unit of material.

Actual Costs

The real costs incurred in the production of goods or services, including all expenses such as materials, labor, and overhead.

Standard Costs

Predetermined costs for materials, labor, and overhead used to control actual operating costs and to measure cost variances.