Which of the Following Statements Is True About a Current

question 95

Multiple Choice

Which of the following statements is true about a current ratio of 1.5?

• A) There is $1.50 of current assets available to pay every dollar of current debt.
• B) There is $1.50 of owner's equity available to pay every dollar of total debt.
• C) The current liabilities are to be repaid at 1.5 times their value.
• D) The current liabilities are 1.5 times of current assets.

Understand and calculate predetermined overhead rates using machine-hours as the allocation base.

Determine the manufacturing overhead applied to specific jobs within various departments.

Calculate predetermined overhead rates for different departments based on direct labor-hours or machine-hours.

Understand the concept of departmental predetermined overhead rates and their application.

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Definitions:

Employee Leasing

Involves an organization paying a fee to a leasing company that provides a pool of employees who are available on a temporary basis. This pool of employees usually constitutes a group or crew intended to handle all or most of the organization’s work needs in a particular area.

Contingent Workforce

A labor pool consisting of people employed by organizations on a non-permanent basis, such as freelancers, temporary contract workers, or consultants.

Survivor Syndrome

Emotional and psychological effects experienced by employees who remain in an organization after significant layoffs or restructuring.

Part-Time Workers

Refers to individuals who are regularly expected to work less than 40 hours a week. They typically do not receive benefits and afford the organization a great deal of flexibility in staffing.