Which One of the Following Items Is Reported as a Current

question 142

Multiple Choice

Which one of the following items is reported as a current asset on a classified balance sheet?

• A)Inventory
• B)Accounts payable
• C)Land
• D)Common stock

---

Definitions:

Overapplied Amount

This term refers to a situation where the allocated or applied costs in cost accounting exceed the actual costs incurred.

Factory Overhead Rate

A cost allocation rate used in manufacturing to assign estimated overhead costs to production activities or output, based on a predetermined formula.

Direct Labor Hours

The total hours worked directly on the production of goods.

Overapplied Overhead

Occurs when the allocated manufacturing overhead costs are more than the actual overhead costs incurred, leading to adjustments in cost accounting records.