The Year-End Balance in the Materials Inventory Controlling Account Is

question 87

Multiple Choice

The year-end balance in the Materials Inventory controlling account is equal to:

• A)The total of the various materials subsidiary ledger accounts (the materials on hand at the end of the period).
• B)The total amount of materials requisitioned during the period.
• C)The total amount of materials purchased during the period.
• D)The amount of materials debited to the Work-in-Process Inventory account during the period.

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within the entity's operating cycle.

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term obligations with its current assets.

Interim Financial Statements

Financial reports that cover a period shorter than a fiscal year, usually quarterly or semi-annually, providing insights into a company's financial status throughout the year.

Work Sheet

An internal document used by accountants to organize and adjust financial information before generating official financial statements.