At the End of the Year, Beta Company Has an Unadjusted

question 36

Multiple Choice

At the end of the year, Beta Company has an unadjusted debit balance in the Manufacturing Overhead account of $3,950. The adjusting journal entry needed to clear the balance to zero will include a:

• A)debit to Cost of Goods Sold $3,950 and credit to Manufacturing Overhead $3,950.
• B)debit to Manufacturing Overhead $3,950 and credit to Cost of Goods Sold.
• C)debit to Work-in-Process Inventory $3,950 and credit to Manufacturing Overhead $3,950.
• D)debit to Gross Profit $3,950 and credit to Cost of Goods Sold $3,950.

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Definitions:

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investing, and financing activities.

Net Increase

The amount by which something grows or rises, subtracting decreases from increases over a period of time.

Financing Activities

Transactions and events that affect long-term liabilities and equity of an organization, such as issuing stock or obtaining a loan.

Financing

The act of providing funds for business activities, making purchases, or investing.