Indicate Which of These Items Is an Asset (A) Liability $\underline{\quad\quad}$

question 80

Essay

Indicate which of these items is an asset (A) liability (L) or owner's equity (OE) account. $\underline{\quad\quad}$ (1) Supplies
$\underline{\quad\quad}$ (2) Owner's Drawings
$\underline{\quad\quad}$ (3) Buildings
$\underline{\quad\quad}$ (4) Notes Payable
$\underline{\quad\quad}$ (5) Salaries and Wages Payable

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels.

Direct Materials Quantity Variance

The difference between the actual quantity of direct materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit.

Direct Material Price Variance

The difference between the actual cost of direct materials and the standard cost multiplied by the quantity purchased, used in variance analysis for cost control.

Actual Price Per Pound

The real cost of a commodity or material expressed on a per pound basis.