Virgen Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During May, the kennel budgeted for 3,700 tenant-days, but its actual level of activity was 3,690 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Actual results for May:
-The net operating income in the planning budget for May would be closest to:
Definitions:
Deferred Revenue
Payments received by a company for goods or services that have yet to be delivered or performed.
Net Income
The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.
Total Liabilities
The sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and any other debts.
IFRS
International Financial Reporting Standards, which are global accounting standards for preparing financial statements, making it easier to compare entities internationally.
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