Which One of the Following Is NOT a Primary Accounting

question 26

Multiple Choice

Which one of the following is NOT a primary accounting issue associated with accounts receivable?

• A) amortizing accounts receivable
• B) recognizing accounts receivable
• C) valuing accounts receivable
• D) accelerating cash receipts from receivables

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Definitions:

Overhead Applied

The amount of overhead cost allocated to products or job orders based on the predetermined overhead rate, used for cost accounting purposes.

Machining Department

A specific division within a manufacturing facility where machining processes such as cutting, drilling, or milling are performed on workpieces to produce finished parts.

Overhead Rates

Ratios used to allocate indirect costs to products or services, based on a predetermined activity base such as labor hours or machine hours.

Machine-Hours

A measure of production time, referring to the total hours that machinery is operated in the manufacturing process.