Gain Contingencies

question 92

Multiple Choice

Gain contingencies

• A)should be accrued when probable and the amount can be reasonably estimated.
• B)are reported as revenues on the income statement.
• C)should be accrued for anticipated lottery winnings.
• D)are almost never accrued and are rarely disclosed.

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Definitions:

Production Supervisor

An individual responsible for overseeing the daily operations of manufacturing plants and ensuring that production targets are met efficiently and safely.

Prime Cost

The total cost of direct materials and direct labor incurred in producing goods.

Conversion Cost

The combined cost of direct labor and manufacturing overheads incurred to convert raw materials into finished goods.

Direct Labor

The wages or salaries paid to workers directly involved in the production of goods or services.