Which One of the Following General Statements About Closing Entries

question 20

Multiple Choice

Which one of the following general statements about closing entries is false -

• A) only the asset and liability accounts may be closed
• B) Sage 50 closes the appropriate accounts automatically when you start a new fiscal period
• C) only the revenue and expense accounts may be closed
• D) net income is closed to the retained earnings capital account

Distinguish between financial and strategic motives behind mergers.

Understand the regulatory and legal frameworks governing mergers and acquisitions.

Identify factors that influence the premium paid in merger transactions.

Comprehend the role of risk and return in financing mergers, including the use of junk bonds.

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Definitions:

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs attributable to a change in the volume of production or procurement.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted or standard fixed overhead costs.

Direct Labor-hours

The complete total of working hours by individuals directly involved in the fabrication process.

Fixed Overhead

Costs that do not vary with the level of production or sales, including rent, salaries, and insurance, which are incurred regardless of the business activity level.