Which of the Following Statements Is Incorrect

question 51

Multiple Choice

Which of the following statements is incorrect?

• A)An income statement reports revenues earned less expenses incurred.
• B)An unadjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments.
• C)Interim financial reports can be based on one-month or three-month accounting periods.
• D)The fiscal year is any 12 consecutive months (or 52 weeks)used by a business as its annual accounting period.
• E)Property,plant,and equipment are referred to as plant assets.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, such as facility maintenance, utilities, and managerial salaries.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities and resources that contribute to their creation or delivery.

Direct Labour-Hours

The total hours worked directly on the manufacturing of goods or provision of services, often used as a basis for allocating overhead.

Overapplied Overhead

When the allocated manufacturing overhead cost exceeds the actual overhead incurred, resulting in a surplus in the cost coverage.