Which of the Following Businesses Is Most Likely to Use

question 32

Multiple Choice

Which of the following businesses is most likely to use process costing?

• A)a paint manufacturer
• B)a law firm
• C)an orthodontist
• D)a custom home builder

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Definitions:

Journal Entries

Records in accounting that document financial transactions in the books of account, showing the debit and credit of each transaction.

Dividends

Payments made by a corporation to its shareholders from its profits or reserves.

Balance Sheet Errors

Mistakes that occur in the preparation of the balance sheet, including misclassifications, incorrect amounts, or omitted transactions.

Retained Earnings

The portion of a company's profits that is kept or retained rather than distributed to shareholders as dividends, typically used for reinvestment.