Which of the Following Is the Correct Journal Entry to Record

question 99

Multiple Choice

Which of the following is the correct journal entry to record direct materials put into production?

• A) Raw Materials Inventory
• Work in Process Inventory
• B) Work in Process Inventory
• Finished Goods Inventory
• C) Work in Process Inventory
• Raw Materials Inventory
• D) Finished Goods Inventory
• Work in Process Inventory

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally to prepare public company financial statements.

Operating Cash Flow

The cash generated by a company’s normal business operations, indicating whether the company can maintain and grow its operations.

Sales Revenues

Income received from selling goods or services over a period of time before any costs or expenses are deducted.

Capital Cost Allowance

A form of tax depreciation that allows businesses in Canada to deduct the cost of a depreciable property over several years.