The Closing Entry for Dividends Includes a Debit to the Dividends

question 85

True/False

The closing entry for dividends includes a debit to the Dividends account and a credit to Retained Earnings.

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Definitions:

Equivalent Units

A concept in cost accounting used to estimate the amount of finished units that could be obtained from a set of partially completed units.

Process Costing

A costing method used where similar items are produced in a continuous process, allocating production costs over the total number of units produced.

Cost Reconciliation Report

A financial report used in manufacturing to reconcile the costs involved in the production process.

Work In Process Inventory

Goods partially completed in the manufacturing process, not yet ready for sale.