If Accounts Receivable Have Increased During the Period

question 25

Multiple Choice

If accounts receivable have increased during the period

• A) revenues on an accrual basis are less than revenues on a cash basis.
• B) revenues on an accrual basis are greater than revenues on a cash basis.
• C) revenues on an accrual basis are the same as revenues on a cash basis.
• D) expenses on an accrual basis are greater than expenses on a cash basis.

---

Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, based on estimated costs.

MH

Often used as an abbreviation for "machine hours," representing the amount of time machines are operated in the production process.

Variable Overhead Rate Variance

The difference between actual variable overhead incurred and the standard cost allocated based on activity level.

Variable Overhead Rate Variance

The difference between actual variable overhead costs incurred and the standard variable overhead costs expected for the actual production level.