Which One of the Following Transactions Decreases a Company's Quick

question 81

Multiple Choice

Which one of the following transactions decreases a company's quick assets?

• A)The board of directors declares a cash dividend to be paid next month.
• B)Salary expense is accrued.
• C)Depreciation expense is recorded.
• D)A payment is made for next year's insurance.

---

Definitions:

Single Plantwide Factory Overhead Rate

A method of allocating total factory overhead costs to units produced, using a single rate for the entire manufacturing plant.

Labor-Intensive Department

A department within a company that relies more on human labor than on machinery or automation to produce goods or provide services.

Capital-Intensive Department

A division within a company that requires a large investment in capital assets relative to its labor cost.

Single Plantwide Factory Overhead Rate

A method of allocating total factory overhead to products based on a single rate, often using total direct labor hours or machine hours.