The First Step in the Accounting Record-Keeping Process Is Recording

question 67

True/False

The first step in the accounting record-keeping process is recording each transaction in a file or other record in the form of a journal entry.

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Definitions:

Work In Process

Goods partially completed in manufacturing but not yet ready for sale, representing a component of a company’s inventory.

Finished Goods

Items are completed and ready for sale following a production process.

Cost Of Goods Manufactured

Represents the total cost incurred to produce products and get them ready for sale, including materials, labor, and overhead costs incurred in the manufacturing process.

Product Costs

The costs directly associated with the production of goods, including raw materials, labor, and manufacturing overhead.