The Beginning Capital Balance Shown on a Statement of Owner's

question 4

Multiple Choice

The beginning capital balance shown on a statement of owner's equity is $86,000.Net income for the period is $36,000.The owner withdrew $44,000 cash from the business and made no additional investments during the period.The owner's capital balance at the end of the period is

• A) $78,000.
• B) $94,000.
• C) $122,000.
• D) $166,000.

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Definitions:

Overhead Volume Variance

The flexible budget at standard volume less the overhead applied. It is an estimate of the unused or overused fixed plant capacity.

Planned Overheads

The estimated costs of indirect materials, labor, and other expenses necessary to run operations that are budgeted for a specific period.

Actual Overheads

The real costs incurred in the day-to-day operation of a business, including utilities, rent, and maintenance.

Capacity Utilization

A measure of how effectively an entity is using its production or operational capacity.