A Favorable Variance Is a Variance That

question 115

Multiple Choice

A favorable variance is a variance that

• A)Increases cash relative to the budgeted amount.
• B)Decreases cash relative to the budgeted amount.
• C)Increases operating income relative to the budgeted amount.
• D)Decreases operating income relative to the budgeted amount.

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Definitions:

Unlimited Personal Liability

A legal obligation where an individual's personal assets can be used to satisfy business debts and liabilities without limit.

Represents Himself

Refers to an individual who acts as his or her own legal representative in court, without an attorney.

Liability of a Partner

The legal responsibility of each partner in a partnership for the debts and obligations of the business, which can extend to their personal assets.

UPA

Uniform Partnership Act, a set of standard laws regulating the operation of partnerships in the United States.