The Journal Entry for Recording Payment for the Short-Term Lease

question 118

Multiple Choice

The journal entry for recording payment for the short-term lease of a fixed asset would

• A)debit the fixed asset and credit Cash
• B)debit Rent Expense and credit Cash
• C)debit a liability and credit Cash
• D)be a memo entry only

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Definitions:

Raw Materials Quantity Variance

The difference between the expected amount of raw materials required for production and the actual amount used.

Materials Price Variance

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

July

The seventh month of the year in the Gregorian calendar, known for marking the midpoint of the calendar year.

Materials Price Variance

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