The Ripple Effects That Occur When the Fed Changes the Federal

question 75

Multiple Choice

The ripple effects that occur when the Fed changes the federal funds rate do NOT include

• A) a change in government spending.
• B) a change in net exports.
• C) a change in investment.
• D) a change in consumption.

Interpret the relationship between actual and standard variable overhead costs.

Understand how to calculate materials price and quantity variances.

Understand and calculate the total variable overhead spending variance.

Understand the impact of actual vs. standard machine-hours on overhead variances.

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Definitions:

Discount on Bonds Payable

The difference between the face value of a bond and its selling price when the bond is sold for less than its face value.

Bonds Payable

Long-term liabilities represented by promissory notes issued by a company to raise capital, to be repaid at a future date.

Installment Note

A debt instrument that requires the borrower to make regular payments (installments) of principal and interest over a set period until the total debt is paid.

Journal Entry

A record in the books of accounts that represents a transaction and its effect on various accounts.