When Cash Is Received by Mail

question 100

Multiple Choice

When cash is received by mail:

• A) the mailroom sends all customer checks to the treasurer, who has the cashier deposit the money in the bank.
• B) the journal entries are made by the controller.
• C) the mailroom compares the deposit to the journal entry made.
• D) all of the above occur.

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Definitions:

Job-Order Costing

An accounting method that tracks costs individually for each job, suitable for manufacturing jobs that are distinct and not identical.

Indirect Labor

Labor costs associated with support work that cannot be directly linked to the production of goods or services, such as maintenance and supervision.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor costs.

Work in Process

Inventory that includes goods in the process of being manufactured but are not yet completed.