Which of the Following Statements Is False as It Relates

question 131

Multiple Choice

Which of the following statements is false as it relates to direct and indirect expenses?

• A) Building expense is an indirect expense.
• B) Indirect expenses cannot be assigned to different departments based on an allocation such as square feet.
• C) If an expense is traceable to a particular department, it is a direct expense.
• D) Advertising expense can be both a direct and an indirect expense.

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Definitions:

Wages Payable

The total amount of wages earned by employees but not yet paid by the employer at the end of an accounting period.

Cash Outflows

The total amount of money being spent by a business during a period.

Dividends Payable

A liability on a company's balance sheet that indicates the amount of dividends it owes to shareholders, to be paid out in the future.

Cash Flow Statement

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.