For Which of the Following Businesses Would the Job Order

question 42

Multiple Choice

For which of the following businesses would the job order cost system be appropriate?

• A)Auto repair shop
• B)Crude oil refinery
• C)Drug manufacturer
• D)Root beer producer

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Definitions:

Note Receivable

An asset on the balance sheet representing money owed to the holder by a debtor, which includes an obligation to pay both the principal and interest.

Dishonoured

Refers to a financial instrument, such as a check or a bill, that is not paid upon presentation for settlement.

Maturity Value

The amount that will be received at the maturity date of an investment, including the principal and any accrued interest.

Note Receivable

A written promise that one party will pay another party a specified sum of money, either on demand or at a set future date.