An Account That Would Be Classified as a Current Liability

question 39

Multiple Choice

An account that would be classified as a current liability is

• A) Dividends payable in stock
• B) Accounts payable - debit balance
• C) Reserve for possible losses on purchase commitments
• D) Excess of replacement cost over LIFO cost of basic inventory temporarily liquidated

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Definitions:

Work in Process

Inventory that includes all materials, labor, and overhead costs for products in the production process but not yet completed.

Lean Manufacturing

A methodology that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Cross-Training

Cross-training involves teaching employees the skills and responsibilities of other positions within the organization to increase flexibility and efficiency.

Product-Oriented Layout

The organization of manufacturing processes around a product. Also referred to as product cells.