________ Variances Are Calculated by Comparing the Master Budget to the Flexible

question 23

Multiple Choice

________ variances are calculated by comparing the master budget to the flexible budget,and ________ variances are calculated by comparing actual costs to the flexible budget (not the master budget) .

• A)Volume;volume
• B)Volume;spending
• C)Spending;volume
• D)Spending;spending

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Definitions:

Bonds Payable

A long-term liability account that records the amounts owed by a company to bondholders, to be repaid at a future date.

Collateral

An asset pledged as security for repayment of a loan, to be forfeited in the event of default.

Secured Bonds

Bonds that are backed by collateral, providing a safer investment option with lower interest rates due to reduced risk.

Debenture Bonds

Bonds that are unsecured and are issued only on the general credit of a corporation.