The Ending Balance in the Finished Goods Control Account Represents

question 208

Multiple Choice

The ending balance in the Finished Goods Control account represents the costs of all jobs that:

• A)have been completed but not sold.
• B)have not been completed.
• C)have been completed and sold to customers.
• D)are reported on the income statement.

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Definitions:

Present Value

The contemporary valuation of a future money sum or cash flow series, based on a defined rate of interest.

Quarterly Withdrawal

The act of removing funds from an account or investment four times a year, typically every three months.

Present Values

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to address the time value of money.

Annuities

An investment product sold by financial institutions that pays out a fixed stream of payments to the individual, and is often used as an income stream for retirees.