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A Contra Account's Normal Balance Is the Opposite of the Normal

question 58

True/False

A contra account's normal balance is the opposite of the normal balance of the related account.


Definitions:

First-In, First-Out

A method of valuing inventory whereby the first items placed into inventory are the first ones considered sold.

Process Costing

A costing method used when homogenous products or services are produced in continuous processes.

Units Completed

The total number of products finished and ready for sale or distribution during an accounting period.

Direct Method

A way to allocate service department costs directly to production departments without any intermediate allocations.

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