All Differences Between the Flexible Budget and Actual Performance Must

question 70

Multiple Choice

All differences between the flexible budget and actual performance must result from

• A)sales.
• B)operations.
• C)differences in quantities.
• D)differences in costs.

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Definitions:

Unearned Rent Revenue

Income received from tenants for periods of occupancy that have not yet occurred, classified as a liability until earned.

Rent Revenue

Income earned from leasing out property or other assets to others.

Adjusting Entry

A journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period.

Total Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.