When a Job Is Completed but Not Sold, the Accounts

question 151

Multiple Choice

When a job is completed but not sold, the accounts affected are

• A) Raw Materials and Work-in-Process.
• B) Work-in-Process and Finished Goods.
• C) Work-in-Process and Cost of Goods Sold.
• D) Finished Goods and Cost of Goods Sold.
• E) Finished Goods and Overhead Control.

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Definitions:

Receivables Balance

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Average Collection Period (ACP)

Measures the average number of days it takes for a company to collect payments from its customers.

Financial Planning

The process of creating strategies for managing financial resources to meet life goals.

Sales Growth

The increase in sales over a specific period, indicating the competitiveness and overall health of a company.