When Overhead Is Debited to Overhead Control, What Is the Credit

question 129

Multiple Choice

When overhead is debited to Overhead Control, what is the credit?

• A) Various payable accounts
• B) Cost of Goods Sold
• C) Work in Process
• D) Finished Goods
• E) Accounts Receivable

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Definitions:

Accounts Payable

Liabilities owed by a business to its creditors for goods and services received, but not yet paid for.

Notes Payable

A financial accounting term that represents a written promise to pay a certain amount of money, typically with interest, on or before a specified date.

Profitability Ratios

Measures of a company’s overall financial performance by evaluating its ability to generate revenues in excess of expenses.

Inventory Turnover

Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.