Which of the Following Transactions Has an Impact on the Bank's

question 7

Multiple Choice

Which of the following transactions has an impact on the bank's cash balance but not on retained earnings?

• A) Purchase of equipment
• B) Sales of goods
• C) Payment of wages
• D) Payment of financial interest

---

Definitions:

Cost of Goods Manufactured

Total production cost of goods completed during a specific period, including materials, labor, and overhead.

Overapplied Overhead

Occurs when the allocated manufacturing overhead cost is more than the actual overhead incurred during a period.

Work in Process Inventory

The value of the materials, labor, and overhead costs of products that are in the production process but have not yet been completed.

Underapplied Overhead

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.