On a Standard Cost Income Statement,the Variances with Debit Balances

question 67

True/False

On a standard cost income statement,the variances with debit balances are shown in parentheses because they are contra expenses and therefore decrease the expense Cost of Goods Sold.

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Definitions:

IRS

The Internal Revenue Service, the U.S. federal agency responsible for tax collection and enforcement of tax laws.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities; essentially the net worth belonging to the owners.

Liabilities

Financial obligations or debts owed by a business to others, which must be paid back in the future.

Assets

Economic resources owned by a business that are expected to provide future benefits or value.