Variances Indicate

question 8

Multiple Choice

Variances indicate

• A)the cause of the variance.
• B)who is responsible for the variance.
• C)that actual performance is not going according to plan.
• D)when the variance should be investigated.

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Definitions:

FMV

Fair Market Value (FMV) is the estimated price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Basis

The amount paid for an asset, used to calculate gain or loss for tax purposes.

Form 1120

A tax form used by corporations in the United States to report their income, gains, losses, deductions, and credits to the IRS.

Fiscal Year

A fiscal year is a 12-month period used for accounting purposes and preparing financial statements, not always coinciding with the calendar year.