In General,the Terms Favorable and Unfavorable Are Used to Describe

question 19

Multiple Choice

In general,the terms favorable and unfavorable are used to describe the effect of a variance on

• A)net income.
• B)sales revenue.
• C)production costs.
• D)operating expenses.
• E)balance sheet.

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Definitions:

Financial Statements

Official records outlining the financial activities and condition of a business or entity, including the balance sheet, income statement, and cash flow statement.

Common Shares

Equity ownership units in a corporation that entitle holders to voting rights and potential dividends.

Return On Equity Ratio

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how well a company uses investments to generate earnings growth.

Financial Statements

Official records that outline the financial activities and condition of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.