Which of the Following Is Not an Example of a Nontrade

question 36

Multiple Choice

Which of the following is not an example of a nontrade receivable?

• A) amounts arising from sale of goods or services
• B) dividends and interest receivable
• C) claims against insurance companies for losses suffered
• D) amounts owing from a purchaser on sale of capital

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Definitions:

Liters

A metric unit of volume equal to 1,000 cubic centimeters, commonly used to measure liquids.

Standard Costs

These are predetermined costs of manufacturing a single unit or a number of units of a product during a specific period, based on expected material, labor, and overhead costs.

Price Variance

A variance that is computed by taking the difference between the actual price and the standard price and multiplying the result by the actual quantity of the input.

Direct Labor-Hours

The total hours worked by direct labor employees on the production of goods or delivery of services.