By Recognizing the Economic Effects of Inflation on the Accounting

question 76

Multiple Choice

By recognizing the economic effects of inflation on the accounting financial statements, which accounting assumption is ignored?

• A)Economic entity assumption
• B)Going concern assumption
• C)Stable dollar assumption
• D)Fiscal period assumption

Prepare flexible budgets for different activity levels and understand its components.

Calculate standard variable overhead rates.

Construct planning budgets and understand the influence of activity levels on budgeted amounts.

Identify and calculate variances between actual and budgeted performances including favorable and unfavorable outcomes.