Which Statement Is Not Correct

question 10

Multiple Choice

Which statement is not correct?

• A)A bank loan due in 5 years is a non-financial liability.
• B)Bonds payable are financial liabilities.
• C)Sales taxes payable are non-financial liabilities.
• D)A bank loan due in 90 days is a financial liability.

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.

Process Costing

An accounting method used for homogeneous products, where costs are accumulated over a period and then allocated to units produced.

Conversion Cost

The combination of direct labor and manufacturing overhead costs, representing the costs to convert raw materials into finished products.

Conversion Costs

Costs required to convert raw materials into finished products, typically including direct labor and manufacturing overhead.