When Budgeted and Actual Results Are Not the Same Amount

question 120

Multiple Choice

When budgeted and actual results are not the same amount there is a budget

• A) error.
• B) difference.
• C) anomaly.
• D) by-product.

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Definitions:

Noncontrolling Interest

An equity interest in a subsidiary held by investors other than the parent company, reflecting a share of ownership not providing control.

Goodwill

A non-tangible asset formed during the acquisition of a company for a sum greater than the fair value of its net assets that can be identified.

Equity Method

An accounting technique used to record investments in other companies, where the investment is shown as an asset and changes in the investment's value are reflected in profits or losses.

Goodwill

An intangible asset that represents the excess of the purchase price over the fair market value of acquired net assets during a business acquisition.