The Adjustments Made on the Worksheet

question 35

Multiple Choice

The adjustments made on the worksheet:

• A)need not be entered in the journal or the ledger.
• B)are posted to the ledger but are not recorded in the journal.
• C)are recorded in the journal but are not posted to the ledger.
• D)are recorded in the journal and then posted to the general ledger accounts.

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Definitions:

Absorption Costing

A method of accounting that incorporates all costs related to manufacturing—including direct materials, direct labor, and all manufacturing overheads, whether fixed or variable—into the product's cost.

Carrying Value

The book value of an asset on a balance sheet, representing its acquisition cost minus depreciation or amortization.

Ending Inventory

The value or quantity of stock and materials a company has at the end of a financial period.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end customer.