A Manager Is More Likely to Investigate the Variance for a Cost

question 7

True/False

A manager is more likely to investigate the variance for a cost that is controllable by someone in the organization than one that is not.

Understand and prepare balance sheets in accordance with GAAP and IFRS.

Master the preparation of journal entries for various transactions.

Calculate common stock and additional paid-in capital from initial investments.

Classify balance sheet accounts into relevant categories.

---

Definitions:

Revenues

Income earned from normal business operations and other activities, often reflected at the top of an income statement.

Financing Activities

Transactions and events where a business either raises funds from financial markets or repays funds previously raised; includes issuance or repurchase of equity and debt.

Cash Flow Statement

The cash flow statement is a financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Dividends

A portion of a company's earnings that is paid to shareholders as a distribution of profits.