Multiple Choice
How are sales transactions typically recorded in the journal using debits and credits?
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2. Transaction Analysis
Journal Entries: Debits and Credits
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Which one of the following best describes a job cost sheet?
A
A ledger account that tracks cash inflows and outflows.
B
A document that records the materials, labor, and overhead costs charged to a specific job.
C
A summary of all journal entries made during an accounting period.
D
A report that lists all outstanding accounts receivable.
Verified step by step guidance1
Understand the concept of a job cost sheet: A job cost sheet is a document used in job order costing systems to track the costs associated with a specific job. It includes details about materials, labor, and overhead costs incurred for that job.
Differentiate the options provided: Analyze each option to determine which one aligns with the definition of a job cost sheet.
Option 1: 'A ledger account that tracks cash inflows and outflows' - This describes a cash ledger, not a job cost sheet.
Option 3: 'A summary of all journal entries made during an accounting period' - This describes a journal summary, not a job cost sheet.
Option 4: 'A report that lists all outstanding accounts receivable' - This describes an accounts receivable aging report, not a job cost sheet. Therefore, the correct answer is the second option: 'A document that records the materials, labor, and overhead costs charged to a specific job.'
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