When a Job Is Complete

question 17

Multiple Choice

When a job is complete:

• A)Work-in-Process Control is debited
• B)Finished Goods Control is credited
• C)the cost of the job is transferred to Manufacturing Overhead Control
• D)actual direct materials, actual direct manufacturing labor, and allocated manufacturing overhead will comprise the total cost of the job

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Definitions:

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity position, measuring its ability to cover short-term liabilities with its most liquid assets.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, often recorded as assets on the balance sheet.

Current Liabilities

Short-term financial obligations that are due to be paid within one year or within the normal operating cycle of a business.

Acid-Test Ratio

A liquidity ratio, also known as the quick ratio, that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and accounts receivable).