Which of the Following Statements Concerning the Worksheet Is Correct

question 17

Multiple Choice

Which of the following statements concerning the worksheet is correct?

• A) When a worksheet is used, there is no need to make journal entries.
• B) A worksheet consists of seven sections.
• C) Section 5 (Income Statement) and Section 6 (Balance Sheet) are optional.
• D) A completed worksheet is a substitute for the financial statements.

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Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products.

Machine-Hours

A measure of production time, referring to the total number of hours machines are operated during a specific period.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and salaries for production managers.

Overapplied Overhead

An instance where the designated cost for manufacturing overhead surpasses the real overhead costs experienced.