Credit Card Bill Payment Amounts -

question 39

Multiple Choice

Credit card bill payment amounts -

• A) are always the same as the credit card payable account balance
• B) are recorded in the payments journal
• C) do not involve any linked accounts
• D) are recorded in the general journal by crediting bank and debiting credit card payable

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Definitions:

Allocation Basis

A criterion or method used to allocate or distribute costs among different departments, products, or activities based on certain factors or proportions.

Overhead Costs

Overhead costs are the indirect expenses associated with running a business that are not directly tied to a specific product or service, including utilities, rent, and management salaries.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire factory or plant to allocate overhead costs to production activities.

Machine Hours

A measure of production time, calculated as the total number of hours machines are operated in the production process.