Which of the Following Statements Is Incorrect

question 51

Multiple Choice

Which of the following statements is incorrect?

• A)Building expense is an indirect expense.
• B)Indirect expenses cannot be assigned to different departments based on an allocation such as square feet.
• C)If an expense is traceable to a particular department,it is a direct expense.
• D)Advertising expense can be both a direct and an indirect expense.

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Definitions:

Shelf Registrations

A process that allows issuers to register a new issue with the SEC that can be sold at any time within a two-year period.

Delayed Sales

A sales arrangement where the transfer of goods or services to the buyer occurs at a later date than the initial agreement.

1933 Securities Act

A United States federal law enacted to ensure more transparency in financial statements so investors can make informed decisions about securities investments.

1934 Act

The Securities Exchange Act of 1934, legislation regulating the secondary trading of securities (stocks, bonds, and debentures) in the United States.