In the Valuation of Inventory at the End of an Accounting

question 36

Multiple Choice

In the valuation of inventory at the end of an accounting period, the following costs are included:

• A) manufacturing costs.
• B) manufacturing and upstream costs.
• C) manufacturing and downstream costs.
• D) manufacturing, upstream and downstream costs.

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Definitions:

Accounts Receivable

Receivables from customers for products or services rendered by a company, awaiting payment.

Accounts Payable

An accounting entry representing a company's obligation to pay off a short-term debt to its creditors or suppliers.

Correcting Entry

An accounting entry made to correct any erroneous or previously misunderstood transactions recorded in the financial statements.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal to ensure the accounting system's mathematical correctness.