Shine Motor Inc

question 5

Multiple Choice

Shine Motor Inc. has decided to switch to a "just-in-time system" of manufacturing and distribution for its vehicles. Which one of the following is most likely to occur?

• A) Inventory levels will increase.
• B) Component parts and subassemblies are now replenished only when needed.
• C) Finished goods inventory will decrease, but raw materials and work-in-process inventories will increase.
• D) The workers at any given process will produce units before they are needed.

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Definitions:

Adjusting Journal Entries

Entries made in accounting records at the end of an accounting period to allocate income and expenditures to the correct period.

Special Journal

A specialized accounting journal designated for the recording of specific types of transactions, such as sales or purchases, to increase efficiency and organization.

General Journal

A primary accounting record used for recording all types of financial transactions, providing a chronological record of all business activities.

Personal Withdrawal

It refers to the money taken out of a business by its owner(s) for personal use, often considered as a draw against the owner's equity.