An Asset-Expense Relationship Exists with

question 24

Multiple Choice

An asset-expense relationship exists with

• A)liability accounts.
• B)revenue accounts.
• C)prepaid expense adjusting entries.
• D)accrued expense adjusting entries.

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Definitions:

Wells Serviced

The number of oil or gas wells that have undergone maintenance, repair, or other services by a company.

Revenue Variance

The difference between the actual revenue earned and the expected or budgeted revenue.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.

Variable Costs

Expenses that fluctuate in direct proportion to the production or sales volume, for instance, direct labor and raw materials.