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:

Money Supply

The full tally of available monetary resources in an economy at a specified time, comprising cash, coins, and checking and savings account funds.

Reserve Requirement

Central bank regulations that set the minimum amount of reserves that must be held by a commercial bank.

Bonds

Financial instruments issued by governments or corporations to raise funds, representing a loan made by the investor to the issuer.

Money Supply

The combined economic financial resources at a given time in an economy.