Define a process costing system and list two types of businesses that would use a process costing system.
What will be an ideal response?
A process costing system is an accounting system that accumulates costs by process. Businesses that would use a process costing system include a soft drink company, medical equipment manufacturer, and surf board manufacturer.
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____________________ represent quantities or percentages by the length of horizontal or vertical bars.
Fill in the blank(s) with the appropriate word(s).
Walter Co made the following errors in 2016: · Ending inventory was overstated by $2,000. · Beginning inventory was understated by $6,000. · Purchases were overstated by $3,000. ? ?Reported net income was $20,000. What is the correct amount of 2016 net income?
A) $19,000 B) $21,000 C) $15,000 D) $4,000
On August 14, Second Street Bank lent $260,000 to City Restaurant on a 75 day, 4% note. What is the maturity date of the note?
A) Oct. 27 B) Oct. 28 C) Oct. 29 D) Oct. 30
The entry to record the declaration of a cash dividend will
A) not affect working capital. B) reduce working capital. C) not affect total stockholders' equity. D) increase total stockholders' equity.