Grohs Kennel Uses Tenant-Days as Its Measure of Activity; an Animal

question 336

Multiple Choice

Grohs 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 December, the kennel budgeted for 2,500 tenant-days, but its actual level of activity was 2,530 tenant-days. The kennel has provided the following data concerning the formulas to be used in its budgeting:

-The net operating income in the planning budget for December would be closest to:

• A) $8,150
• B) $11,914
• C) $8,483
• D) $11,633

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Definitions:

Harmonized Sales Tax

A combined tax that merges a country's federal tax system with that of its states or provinces, used in some countries including Canada.

HST

Harmonized Sales Tax, a combined tax that includes both federal and provincial sales taxes in some Canadian provinces.

Financial Liability

An obligation to pay money to another party, including loans, bond issuances, and accounts payable.

Notes Payable

A formal, written agreement to pay a certain amount of money, with interest, by a specified future date.