Which of the Following Is/are True Regarding the Finished Goods

question 42

Multiple Choice

Which of the following is/are true regarding the Finished Goods Inventory account?

• A)This account measures the total manufacturing cost of units completed but not yet sold.
• B)The sale of manufactured goods to customers results in a transfer of their cost from the Finished Goods Inventory account to Cost of Goods Sold.
• C)The journal entry for the sale of the inventory to a customer is a debit to Cost of Goods Sold and a credit to Finished Goods Inventory.
• D)all of the above
• E)none of the above

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Definitions:

Lemons

Beyond its botanical context, refers to goods of subpar quality, particularly used in the context of the used-car market to describe vehicles with defects.

Potential Buyers

Individuals or entities that have shown interest or possess the capability to purchase goods or services.

Lemons

In economics, a term used to describe a product of significantly lower quality than what was expected, particularly in the context of used vehicles.

Potential Buyers

Individuals or entities that show interest in purchasing a product or service but have not yet made the decision to buy.