Which Statement Is Not Correct

question 88

Multiple Choice

Which statement is not correct?

• A)the post-closing trial balance reports the ending balance of each account in the general ledger
• B)one purpose of preparing the unadjusted trial balance is to ensure that debits equal credits
• C)financial statements are prepared based on the unadjusted trial balance
• D)the unadjusted trial balance reports control account balances but omits subsidiary ledger detail

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Definitions:

Materials Costs

The cost incurred by a company to purchase, handle, and store raw materials used in the production of goods, often comprising a significant portion of total production cost.

Equivalent Units

A method used in process costing that converts partially completed goods into a number of completed units of output.

Assembly Department

An area in a manufacturing plant where parts are put together to create finished goods.

Conversion Costs

These are the costs required to convert raw materials into finished products, comprising labor and overhead expenses.