Bernes Kennel Uses Tenant-Days as Its Measure of Activity; an Animal

question 246

Multiple Choice

Bernes Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During October, the kennel budgeted for 2,700 tenant-days, but its actual level of activity was 2,720 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting: The activity variance for administrative expenses in October would be closest to:

• A) $2 F
• B) $162 F
• C) $162 U
• D) $2 U

Comprehend the principles of liability recognition and measurement, including contingent liabilities and instalment payments.

Master the concepts related to the effective-interest method and its application in financial reporting.

Learn the accounting treatments for different types of loans and payables, including interest calculations and loan repayments.

Differentiate between financial and non-financial liabilities and their respective accounting treatment.

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Definitions:

Renounces

The act of formally or officially declaring the abandonment or rejection of a right, title, position, or allegiance.

Agency Law

A body of law concerning the relationship where one party (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties.

Instructions

Directions or orders given by one party to another, especially in the context of a legal, business, or contractual relationship.

Revocation

The official cancellation or withdrawal of an offer, right, or privilege, often requiring a formal declaration.