An Excess of Receipts Over Payments on the Current Account

question 77

Multiple Choice

An excess of receipts over payments on the current account

• A)must equal the net debit balance of the current account.
• B)must be matched by an excess of payments over receipts on the capital account.
• C)must equal the net credit balance of the capital account.
• D)is not possible.
• E)must be matched by an excess of receipts over payments on the capital account.

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Definitions:

Variable Overhead

Costs of indirect production materials or services that fluctuate with the level of production activity, such as utilities for a factory.

Direct Labor-hours

The amount of labor time spent by workers directly involved in the manufacturing process, restated as "The quantity of labor time directly utilized in producing goods."

Variable Overhead Efficiency Variance

The difference between the actual variable overhead based on the standard cost and the variable overhead applied to production based on actual activity levels.

Direct Labor-hours

The total hours of labor directly involved in the production of goods or services.