Which of the Following Statements Is Not True About Accounts

question 146

Multiple Choice

Which of the following statements is not true about accounts payable?

• A)It is credited when merchandise is purchased on account.
• B)It is credited for transportation charges paid.
• C)It is debited when payment is made on account.
• D)It is debited when merchandise is returned by the purchaser.

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating manufacturing overhead costs.

Standard Cost System

A system of accounting that uses cost standards for costing materials, labor, and overhead.

Fixed Manufacturing Overhead Rate

This refers to the rate at which all fixed manufacturing costs are allocated across units produced, typically calculated at the beginning of a fiscal period.

Variances

The difference between planned or expected financial outcomes and the actual results.