Application of Skills Directions

question 18

Multiple Choice

Application of Skills Directions:
Apply the knowledge you have gained from Chapter 25 to answer the following questions.
Which of the following sentences uses the dash correctly?

• A) Quiche, a delicious breakfast food-is easy and quick to make.
• B) Quiche--a delicious breakfast food--is easy and quick to make.
• C) Quiche-a delicious breakfast food-is easy and quick to make.
• D) Quiche - a delicious breakfast food - is easy and quick to make.

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Definitions:

Direct Method

A method of allocating service department costs directly to producing departments without any intermediate allocation steps.

Accrued Liabilities

Accrued liabilities are financial obligations that a company has incurred but has not yet paid or recorded in its financial statements.

Direct Method

A cost allocation method that assigns service department costs directly to producing departments without any intermediate allocations.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid.