Which of the Following Applies to Goods That Are Produced

question 7

Multiple Choice

Which of the following applies to goods that are produced by a manufacturing company and ready to sell?

• A) Materials inventory
• B) Work in process inventory
• C) Merchandise inventory
• D) Finished goods inventory

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Definitions:

Cash Payments Journal

The special journal in which all cash payments are recorded.

Account Receivable

Money owed to a company by its debtors for goods or services that have been delivered or sold but not yet paid for.

Subsidiary Ledgers

Detailed ledgers that provide a breakdown of individual accounts that are summarized in the general ledger.

Customers Ledger

A subsidiary ledger containing individual accounts for customers, showing each customer's sales, payments, returns, and the current balance owed.