Examlex
Kaina Clinic uses client-visits as its measure of activity. During May, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,970 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Actual results for May:
The activity variance for personnel expenses in May would be closest to:
Loan Made
Money that is lent to another party in exchange for future repayment of the loan value amount, plus interest.
Indirect Method
An accounting technique used to prepare the cash flow statement, where increases in non-cash current assets are subtracted from, and increases in current liabilities are added to, net income to arrive at net cash flow from operating activities.
Net Cash
The difference between all cash inflows and outflows within a given period, often used to assess financial health.
Operating Activities
Day-to-day actions and transactions that are directly related to running a business, such as buying, selling, and production.
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