The Variable D^- Measures

question 4

Multiple Choice

The variable d^- measures

• A) the amount over the target and is similar to a slack.
• B) the amount under the target and is similar to a slack.
• C) the amount over the target and is similar to a surplus.
• D) the amount under the target and is similar to a surplus.

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Definitions:

Consolidation Adjusting Entries

Journal entries made in the process of preparing consolidated financial statements to eliminate intercompany transactions and balances.

Group Profit

is the total earnings of a conglomerate, calculated after all expenses and taxes, resulting from the operations of all its subsidiaries.

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.