Which of the Following Transactions Is Recorded in the "Receive

question 20

Multiple Choice

Which of the following transactions is recorded in the "Receive Payments" function of QuickBooks?

• A)Paying electricity bill
• B)Sold merchandise inventory on account to a customer
• C)Sold a product to a customer for cash
• D)Coupon payments to the bondholders

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Definitions:

Labor Efficiency Variance

The difference between the actual labor hours used and the expected (standard) labor hours for the level of production, multiplied by the standard labor rate.

Direct Materials

The raw materials that can be directly attributed to the production of a product and are a part of the finished product.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) cost based on the actual level of activity.

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity of materials purchased.