If the Financial Statements of Sushi Show, Inc

question 35

Multiple Choice

If the financial statements of Sushi Show, Inc.show $500 of over-applied overhead for the current year, where will that balance be shown in the financial statements if not material?

• A)In the current assets section as a prepaid amount
• B)No amount should be shown in the financial statements for over-applied overhead.
• C)In the current liabilities section as unearned revenue
• D)As part of cost of goods sold

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Definitions:

Cash Flow

Total funds inflow and outflow within a business and its effect on liquid assets.

WACC

Weighted Average Cost of Capital; a calculation used to estimate the cost of financing a company's assets, blending debt and equity costs.

MIRR

Modified Internal Rate of Return, which adjusts for the differences in reinvestment rates of a project's cash flows.

Project

A temporary endeavor undertaken to create a unique product, service, or result with defined objectives and constraints.