Which of the Following Is Correct for a Firm That

question 65

Multiple Choice

Which of the following is correct for a firm that reduces its accounts receivable balance from the previous quarter?

• A)collections exceeded beginning receivables balance
• B)sales exceeded collections
• C)beginning receivables balance exceeded sales
• D)collections exceeded sales

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Definitions:

Machine Hours

Machine hours denote the total amount of time a machine is operated within a specific period, used for costing and operational efficiency measures.

Overhead Applied

Overhead applied is an accounting term referring to the allocation of indirect costs to the production of goods or services, based on a predetermined rate.

Overapplication of Overhead

The situation where the allocated manufacturing overhead costs exceed the actual overhead costs incurred during a period.

Machine Hours

A measure of the time a machine is in operation, used in cost accounting to allocate machine costs to products.