Which of the Following Statements Is Not True

question 49

Multiple Choice

Which of the following statements is not true:

• A)Accounts receivable are held by a seller.
• B)Accounts receivable arise from credit sales.
• C)Accounts receivable are increased by customer payments.
• D)Accounts receivable are classified as assets.
• E)Accounts receivable are increased by billings to customers.

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Definitions:

Fixed Contract Price

A predetermined and agreed-upon amount that will be paid for the delivery of goods or services under a contract, regardless of changes in costs or expenses.

Labour Efficiency Variance

Labour efficiency variance is the difference between the actual hours of labor consumed to produce a good or service and the standard hours expected, measured to assess productivity performance.

Direct Labour Standard

The benchmark or norm for the amount of labor time that is considered necessary to produce a unit of product under standard operating conditions.

Machine Breakdown

A failure or malfunction of machinery which leads to production halting and potential delays in operations.