Dividends That Are Declared at Year-End but Not Received on Investments

question 80

Multiple Choice

Dividends that are declared at year-end but not received on investments in securities held for sale or trading should be recognized when

• A)received as cash
• B)the new year begins
• C)declared
• D)accrued

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Definitions:

Direct Labor Costs

Expenses attributed to the payment of employees directly involved in the production of goods or services.

Machine Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing overhead costs.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the period begins based on estimates of total costs and activity levels.

Direct Material

Raw materials that are directly traceable to the production process and are an integral part of the finished product.