Which of the Following Statements Is Correct

question 119

Multiple Choice

Which of the following statements is correct?

• A)A direct cost can be readily traced to a cost object while an indirect cost is traced only to manufacturing costs.
• B)An indirect cost can be readily traced to a cost object while a direct cost is traced only to manufacturing costs.
• C)A direct cost can be traced to a specific cost object,while an indirect cost cannot.
• D)An indirect cost can be traced to a specific cost object,while a direct cost cannot.

Explain the significance of assumptions in accounting such as the going concern assumption, the monetary unit assumption, and the economic entity assumption.

Understand the concept of revenues and how they affect equity.

Identify the obligations of a business and how they are represented in accounting.

Understand the basic financial statements and their purposes.

---

Definitions:

Self-Incrimination

The act of implicating oneself in a crime, which the Fifth Amendment of the U.S. Constitution protects against by allowing individuals to refrain from answering questions that could incriminate them.

Selective Incorporation

A constitutional doctrine that ensures states cannot enact laws that infringe on the rights of citizens that are protected under the Bill of Rights.

Fourteenth Amendment

An amendment to the U.S. Constitution, ratified in 1868, granting citizenship to all persons born or naturalized in the United States, including former slaves, and guaranteeing all citizens equal protection of the laws.

Bill of Rights

The first ten amendments to the U.S. Constitution, guaranteeing fundamental civil rights and liberties.