The Recording Process Has a Sequence of Five Steps

question 54

Multiple Choice

The recording process has a sequence of five steps.What is the specific order of the steps?

• A)Journal,trial balance,financial statements,ledger,transaction documentation
• B)Transaction documentation,journal,ledger,trial balance,financial statements
• C)Transaction documentation,ledger,journal,trial balance,financial statements
• D)Ledger,journal,transaction documentation,trial balance,financial statements
• E)Trial balance,financial statements,ledger,journal,transaction documentation

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Definitions:

Process Costing

An accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process, to determine the cost of each product.

Processing Department

An organizational unit where work is performed on a product and where materials, labor, or overhead costs are added to the product.

Equivalent Units

A measure used in cost accounting to express the amount of work done by employees and machines in terms of fully completed units of output.

Ending Inventory

The total value of all inventory, including raw materials, work-in-process, and finished goods, at the end of an accounting period.