Which of the Following Correctly Describes a Certificate of Deposit

question 14

Multiple Choice

Which of the following correctly describes a certificate of deposit?

• A) It is a draft that is payable by a bank.
• B) It is not considered to be a negotiable instrument.
• C) It is a note that is payable on demand.
• D) It is a note where the maker is a bank.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, indirect labor, and materials.

Work in Process

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

Finished Goods

The final products that are completed and ready for sale to customers.

Job-Order Costing

An accounting methodology used to assign manufacturing costs to individual units or batches of production, based on the jobs performed.