The Chart of Accounts for the Corning Company Includes the Following

question 16

Multiple Choice

The chart of accounts for the Corning Company includes the following:

Page 5 of the journal contains the following entry:

- What is the posting reference that will be found in the salaries expense account?

• A)5
• B)11
• C)54
• D)21

Apply standard hours and standard machine-hours as bases for overhead application.

Recognize the role of direct labor-hours in variable overhead application.

Understand the process of budgeting machine-hours and its effect on overhead costs.

Calculate and interpret the standard costs and actual costs differences.

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Definitions:

Dividends

Corporate profits shared with shareholders in the form of monetary disbursements.

Significant Influence

The power to participate in the financial and operating policy decisions of a business, but not control them completely, typically associated with ownership of between 20% and 50% of voting stock.

Fair-value Method

An accounting strategy used for valuing and assessing assets and liabilities based on current market prices or estimates.

Equity Method

An accounting technique used to assess the earnings of an investment in another company by recognizing the income earned proportional to ownership interest.