A Linkage Between the Financial Statements Includes Which of the Following

question 31

Multiple Choice

A linkage between the financial statements includes which of the following?

• A)net income from the balance sheet is entered into the income statement
• B)net income from the income statement is entered into the retained earnings in the balance sheet
• C)assets have to equal liabilities
• D)cash is the total expenses on the income report

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Definitions:

Direct Labour Rate Variance

The difference between the actual labor costs incurred and the standard labor costs for the actual production achieved.

Standard Quantity

The predetermined amount of material or inputs expected to be used in the production of a product or service.

Standard Price

The predetermined cost of a single unit of input, such as materials or labor, used in standard costing practices.

Direct Labour

The labor costs for employees directly involved in the production of goods or services.