Reversing Entries for a Manufacturing Business Are

question 60

Multiple Choice

Reversing entries for a manufacturing business are:

• A)made prior to preparing the post-closing trial balance.
• B)made for the inventory accounts only.
• C)closed into the Manufacturing Summary account.
• D)made for accrual adjustments.

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Definitions:

Service Departments

Divisions within a company that provide support and services to other departments rather than directly generating revenue.

Indirect Expenses

Costs that are not directly associated with the production of goods or services but necessary for the business to operate, like rent and utilities.

Department Income Statement

This financial statement measures the revenue, expenses, and net income of a specific department within a company, showcasing its financial performance.

Controllable Cost

Expenses that can be directly managed or influenced by a particular manager or department within a company.