Which of the Following Is Correct

question 93

Multiple Choice

Which of the following is correct?

• A)The raw materials inventory account is used to record inventory purchased by a retailer for resale.
• B)Work in process is an expense account used by a manufacturing company.
• C)Finished goods is an asset account used by a manufacturing company to record the cost of inventory ready for sale.
• D)Retailers use a purchases account to record raw materials inventory.

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Definitions:

Allocated Tips

Tips that are assigned to an employee by their employer, typically in industries where tipping is customary, and are reported for tax purposes.

Medicare Taxes

Medicare Taxes are federal payroll taxes that fund the Medicare program, typically deducted from an employee's paycheck.

W-2 Form

A tax form issued by employers to employees detailing the employee's annual wages and the amount of taxes withheld from their paycheck, critical for preparing individual income tax returns.

Form 1040

The standard Internal Revenue Service (IRS) form that individuals use to file their annual income tax returns.