Which of the Following Is/are True

question 26

Multiple Choice

Which of the following is/are true?

• A)The primary goal of internal controls for cash payments is to ensure that the business pays all transactions.
• B)The primary internal control goal for cash receipts is to ensure that the business receives the appropriate amount of cash and safely deposits it in the bank.
• C)The operating cycle is a series of activities that a company undertakes to generate returns and,ultimately,revenues.
• D)All of the choices are correct.

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Definitions:

Equivalent Units

A metric used in cost accounting to express the amount of work completed by manufacturers in terms of fully finished units.

Process Costing

A costing method used in manufacturing where costs are allocated to batches of products, suitable for homogeneous products.

Conversion Costs

The total expenses of direct labor plus manufacturing overhead costs, spent in the process of transforming raw materials into completed goods.

Equivalent Units

A measure used in cost accounting to express the amount of work done by employees or machines in terms that allow for the comparison between completed units and units that are partially completed.