Closing Entries May Be Prepared from All of the Following

question 181

Multiple Choice

Closing entries may be prepared from all of the following except

• A) Adjusted balances in the ledger
• B) Income statement and balance sheet columns of the worksheet
• C) Balance sheet
• D) Income and owner's equity statements

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Definitions:

Flexible Budget

A financial plan that modifies itself in response to variations in volume or activity intensity.

Spending Variance

The difference between the actual amount spent and the budgeted or standard amount expected to be spent.

Net Operating Income

Income before interest and income taxes have been deducted.

Flexible Budget Performance Report

A report that compares the actual performance of a business to a budget that adjusts with the level of activity, providing insight into variance reasons.