Dorffman Inc

question 101

Multiple Choice

Dorffman Inc.has a $12 000 favourable flexible budget variance for May.If May's actual net income was $68 000,which of the following statements is true?

• A) Dorffman's static budget must have showed net income of $56 000.
• B) Dorffman's static budget must have showed net income of $80 000.
• C) Dorffman's flexible budget must have showed net income of $56 000.
• D) Dorffman's flexible budget must have showed net income of $80 000.

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Definitions:

Primary Market Transaction

Financial transactions that occur when securities are issued for the first time, such as an initial public offering (IPO).

Direct Transfer

The movement of assets or funds from one type of account or investment vehicle directly to another without taking possession, often seen in IRA or 401(k) rollovers.

Share Certificates

Physical documents issued by a company that certify the holder is the owner of a specified number of shares in that company.

Sole Proprietorship

A business structure in which a single individual owns the company and is responsible for its debts and liabilities.