When a Corporation Is Dissolved Voluntarily, Its Assets Can Be

question 62

True/False

When a corporation is dissolved voluntarily, its assets can be liquidated without notice to its creditors.

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Definitions:

Overhead Rate

The ratio used to allocate indirect costs to produced goods, calculated by dividing total overheads by an allocation base.

Plantwide Predetermined

A single overhead rate calculated for an entire plant or facility, used to allocate overhead costs to all products equally.

Direct Labor-Hour

A measure of the amount of time spent by workers directly involved in the manufacturing process to produce a single unit.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate estimated overhead costs to products or job orders based on a chosen activity base.