When a Job Is Completed,the Journal Entry Involves A

question 258

Multiple Choice

When a job is completed,the journal entry involves a:

• A)debit to work in process inventory and a credit to finished goods inventory.
• B)debit to finished goods inventory and a credit to work in process inventory.
• C)debit to cost of goods sold and a credit to finished goods inventory.
• D)debit to finished goods and a credit to cost of goods sold.

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Definitions:

Earnings Per Share

A company's profit allocated to each outstanding share of common stock, indicating the company's profitability on a per-share basis.

Receivable Turnover Ratio

A measure of how efficiently a company collects its accounts receivable, calculated by dividing net credit sales by average accounts receivable.

Inventory Turnover Ratio

A metric that calculates the number of times inventory is sold or consumed in a given time frame, reiterating the effciency of inventory management.

Quick Ratio

Quick ratio, also known as acid-test ratio, is a liquidity metric that indicates a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.