_____________ Expenses Are Those Expenses That Do Not Vary with the Level

question 82

Short Answer

_____________ expenses are those expenses that do not vary with the level of sales, thus, you will have to cover these expenses even if the sales are less than the expenses.

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Definitions:

Journalized

The process of recording financial transactions in a company's journal, detailing the accounts affected by each transaction.

Adjusting Entries

Are journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred, for the purpose of financial reporting accuracy.

Financial Statements

Documents that present an organization's financial activity and current financial condition, including the balance sheet, income statement, and cash flow statement.

Nominal Accounts

Accounts that are closed at the end of each accounting period, including revenue, expense, and withdrawal accounts.