The Double-Entry System Is NOT Used in the Preparation of the ______

question 81

Multiple Choice

The double-entry system is NOT used in the preparation of the ______.

• A) statement of changes in equity
• B) income statement
• C) balance sheets
• D) statement of cash flows

---

Definitions:

Machine Hours

A measure of the amount of time a machine is run during a specific period, often used as a basis for allocating manufacturing overhead.

Overapplied

Overapplied refers to a situation where the overhead allocated to products or services exceeds the actual overhead costs incurred, usually in manufacturing settings.

Underapplied

A term often used in accounting to refer to a situation where the allocated costs are less than the actual costs incurred.

Job Order Cost System

An accounting system that accumulates manufacturing costs separately for each job or order, tracking direct labor, direct materials, and applied overhead.