Transactions That Take Place in the Period Between the End

question 123

Multiple Choice

Transactions that take place in the period between the end of the fiscal year and the financials statement released must be disclosed and described when which of the following happens:

• A)When common shares are issued after the fiscal year end and the proceeds were used to retire preferred shares.
• B)When a subsequent event would significantly change the number of common shares or the potential common shares used in basic or diluted EPS.
• C)When common shares are issued after the fiscal year end for cash, on the exercise of options.
• D)All of these choices are correct.

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Definitions:

Total Labor Cost Variance

This refers to the difference between the actual labor costs incurred and the standard labor costs for the actual production levels.

Labor Per Unit

The amount of labor cost assigned to each unit of production.

Direct Labor

The wages of employees or workers who are directly involved in the production of goods or services.

Direct Materials Quantity Variance

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