A Clock Card Is a Source Document That an Employee

question 40

True/False

A clock card is a source document that an employee uses to report how much time was spent working on a job or on overhead and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead.

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and net income or loss over a specific period, indicating its financial performance.

Items Reported

Specific financial data points or transaction details disclosed in a company’s financial statements.

Accounting

Accounting is the systematic process of recording, measuring, and communicating financial information about an entity, facilitating decision making and financial management.

Credit Balance

The amount of money a business owes to its creditors, represented as a liability on the balance sheet.