Which of the Following Is True Regarding the Reporting of Budget-Actual

question 113

Multiple Choice

Which of the following is true regarding the reporting of Budget-Actual Comparisons?

• A) A Budget-Actual Comparison Schedule is required for the General Fund and all major special revenue funds that have a legally adopted annual budget.
• B) A Budget-Actual Comparison Statement may be prepared in lieu of the Schedule.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Shut Down

A short-term decision by a firm to cease production when marginal revenue does not cover variable costs, differing from going out of business, which is a long-term decision.

Total Revenues

The entire sum of money earned from selling goods or services prior to deducting any costs.

Fixed Costs

Expenses that do not change in relation to the level of goods or services produced by a business, such as rent, salaries, and loan payments.

Off Season

A period of the year when a particular activity, typically related to tourism or agriculture, is at its lowest level of demand.