Which of the Following Most Likely Is an Example of an Accrued

question 35

Multiple Choice

Which of the following most likely is an example of an accrued liability?

• A) Salaries payable
• B) Accounts payable
• C) Current portion of long-term debt
• D) Sales tax payable

Understand the method to calculate predetermined overhead rates based on different allocation bases such as machine-hours, labor-hours, and capacity.

Learn how to determine manufacturing overhead applied to jobs and the computation of unit product costs.

Understand the principle of calculating the cost of unused capacity and how it affects the costing system.

Develop an understanding of how job-order costing systems compute manufacturing overhead and apply it to jobs.

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Definitions:

Serial Bonds

Bonds of a single issue that mature in installments at regular intervals.

Bonds Outstanding Method

A method used to calculate the total amount of issued bonds by a corporation that have not yet been redeemed or matured.

Amortizing Discount

An Amortizing Discount is the process of spreading the amount of a bond's discount over its expected life, usually through regular charges to expense.