Which of the Following Will Have No Effect on Total

question 111

Multiple Choice

Which of the following will have no effect on total assets?

• A)Billing a customer for work performed during the current month
• B)Receiving cash from a customer to pay for a previously recorded account receivable
• C)Receiving cash from a customer for work to be performed next month
• D)Receiving cash from a customer for work performed today

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Definitions:

Labour Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level of a business.

Overhead Volume Variance

The difference between the budgeted and actual overhead costs, attributable to variations in production volume.