Prestridge Corporation Is a Service Company That Measures Its Output

question 312

Multiple Choice

Prestridge Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August. When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August.The activity variance for net operating income for August would have been closest to:

• A) $5,200 F
• B) $4,100 U
• C) $5,200 U
• D) $4,100 F

Understand the distinction between capital (financial) leases and operating leases.

Identify the conditions under which a lease is classified as a capital or operating lease for accounting purposes.

Recognize the financial implications of leasing for both the lessee and the lessor.

Comprehend the role and terms of sale and leaseback agreements.

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Definitions:

A State

A temporary condition or phase that an individual or system experiences, which can influence thoughts, feelings, and behaviors.

Positive A State

A condition characterized by the presence or increase of positive emotions or affect.

Addiction

A chronic condition characterized by compulsive engagement in rewarding stimuli, despite adverse consequences.

Solomon

Richard L. Solomon was an American psychologist known for his work on the opponent-process theory of emotions, which explains complex emotional and motivational states.