A Summary of the Materials Requisitions Completed During a Period

question 146

Multiple Choice

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for:

• A) work in process and cost of goods sold
• B) work in process and factory overhead
• C) finished goods and cost of goods sold
• D) work in process and finished goods

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Definitions:

Automatic Stabilizers

Economic policies and programs that automatically adjust to temper the fluctuations in an economy, such as unemployment insurance and progressive taxes.

Annual Deficit

The shortfall that occurs when a government's expenditures exceed its revenues within a one-year period.

Economy Contracting

A phase where there is a decrease in the level of economic activity within a country, often indicated by a reduction in spending, investment, and GDP growth.

Trade Deficits

A situation where a country's imports of goods and services exceed its exports within a specified time period.