What Type of Variation Can Be Reduced, or Even Eliminated

question 1

Multiple Choice

What type of variation can be reduced, or even eliminated, and is usually nonrandom in nature?

• A) chance
• B) external
• C) assignable
• D) co-variation

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Definitions:

Depreciation Expense

The deliberate apportionment of a tangible asset's cost over the period it is expected to be useful.

Useful Life

The estimated time period a fixed asset is expected to be usefully productive for a business.

Deferred Revenues

Income received by a company for goods or services not yet delivered or rendered, recorded as a liability on the balance sheet until earned.

Adjusting Entry

At the close of an accounting cycle, adjusting entries are recorded in the journal to apportion revenues and expenses to the time frame in which they were truly incurred.