If the Debit and Credit Column Totals of a Trial

question 191

Multiple Choice

If the Debit and Credit column totals of a trial balance are equal, then:

• A) All transactions have been recorded correctly.
• B) All entries from the journal have been posted to the ledger correctly.
• C) All ledger account balances are correct.
• D) The total debit entries and total credit entries are equal.
• E) The balance sheet would be correct.

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Definitions:

Process Cost System

An accounting system used to track and assign production costs to units of output, particularly useful for homogeneous products.

Equivalent Units Of Production

A calculation used in cost accounting to apportion costs among completed units and units in process, based on their stage of completion.

Overapplied Overhead

A situation where the allocated overhead costs are more than the actual overhead costs incurred.

Weighted-Average Method

An inventory costing method that assigns an average cost to each unit of inventory, taking into account both the cost and the quantity of each item purchased.