Which of the Following Accounts Would Not Be Considered When

question 106

Multiple Choice

Which of the following accounts would not be considered when calculating the quick ratio?

• A)Marketable securities.
• B)Inventory.
• C)Accounts receivable.
• D)Accounts payable.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or job orders, based on a pre-established formula or basis.

Fixed Manufacturing Overhead

Regular, static expenses associated with operating a manufacturing facility, such as rent, utilities, and salaries, that do not vary with the level of production.

Direct Labor-hours

Direct labor-hours are the total hours worked by employees directly involved in the manufacturing process, used as a measure for allocating labor costs to products.

Predetermined Overhead Rate

The rate estimated at the beginning of a period to allocate overhead to products or job orders, calculated based on expected overhead costs and an allocation base.