When Do Materials in the Raw Materials Account Become Direct

question 188

Multiple Choice

When do materials in the raw materials account become direct materials?

• A) when they are put into production
• B) when they are returned to the supplier
• C) when the production process is complete
• D) when they are received from the supplier

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Definitions:

Face Value

The nominal value printed on a financial instrument like a bond or currency note, representing its legal value.

Issuer

An entity, such as a corporation or government, that develops and offers securities for sale to investors to raise capital.

Issued

Pertains to securities or other financial instruments that have been created and offered for sale to investors by a corporation or government entity.

Cash Received

The total amount of cash that an entity collects during a specific period, from various sources including sales, financing, or investments.