If Accounts Payable Has Been Credited, It Is Most Likely

question 97

Multiple Choice

If Accounts Payable has been credited, it is most likely that:

• A) a sale was made on account.
• B) a purchase was made on account.
• C) a correcting entry was made for the overstatement of the purchase of equipment on account.
• D) a customer paid a bill on account.

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Definitions:

Factory Overhead

The indirect manufacturing costs not directly tied to the production of a specific product, such as electricity for the manufacturing plant.

Machine Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead costs to products.

Cost Accounting Systems

Methods and procedures used by businesses to track, record, and analyze costs associated with their operations.

Manufacturing Operations

Encompasses the processes involved in converting raw materials or components into finished goods.