Use the Information Below to Answer the Following Question(s)

question 61

Multiple Choice

Use the information below to answer the following question(s) .Tractor Corporation produces toy tractors.The company uses the following direct cost categories:
Actual performance for the company is shown below:
Actual output: 5,000 units
Direct Materials:
Direct Manufacturing Labour:
Direct Marketing Labour:

-What are the efficiency variances for direct manufacturing labour and direct marketing labour, respectively?

• A)$25,000 favourable; $18,400 favourable
• B)$23,750 favourable; $12,650 unfavourable
• C)$25,000 unfavourable; $18,400 unfavourable
• D)$23,750 unfavourable; $12,650 unfavourable
• E)$23,750 favourable; $12,650 favourable

Journalize transactions related to notes payable and accounts receivable.

Prepare the Current assets section of the balance sheet.

Understand the impact of allowance for doubtful accounts on current assets.

Compute and interpret financial ratios and their significance to business performance.

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Definitions:

Repossess

The act of taking back goods or property by a seller or lender from the buyer or borrower, usually due to failure to meet the terms of the sale or loan agreement.

Deficit

A financial situation where expenditures exceed revenue.

Security Agreement

A security agreement is a legal document that provides a lender a security interest in a specified asset or property pledged as collateral, detailing the terms regarding the secured transaction.

Repossess

The act of taking back ownership of property, typically when a buyer fails to make the required payments.