Which of the Following Is an Example of a Factory

question 97

Multiple Choice

Which of the following is an example of a factory overhead cost?

• A) Repair and maintenance cost on the administrative building
• B) Factory heating and lighting cost
• C) Insurance premiums on salespersons' automobiles
• D) President's salary

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Definitions:

Adjusting Entries

Accounting records created at the conclusion of an accounting cycle to distribute revenues and expenses to the period they truly belong.

Cash Flow Statement

A cash flow statement is a financial report that provides aggregate data regarding all cash inflows and outflows a company receives.

Deferred Expense

Deferred Expense is an expenditure that is made in advance and included in assets to be used or consumed in a future period.

Prepaid Insurance

An asset account that represents insurance premiums paid in advance, which are expensed over the period the insurance coverage relates to.