Which of the Following Journal Entries Would Be Recorded If $$\begin{array} { | l | r | r | } \hline \text { Tane Brown, capital } & 6000 & \\\hline \text { Cash } & & 6000 \\\hline\end{array}$$

question 42

Multiple Choice

Which of the following journal entries would be recorded if Jane Brown started a business and then deposited cash of $6 000 into the business bank account?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Tane Brown, capital } & 6000 & \\
• \hline \text { Cash } & & 6000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Tane Brown, capital } & 6000 & \\
• \hline \text { Accounts payable } & & 6000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts payable } & 6000 & \\
• \hline \text { Cash } & & 6000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 6000 & \\
• \hline \text { Jane Brown, capital } & & 6000 \\
• \hline
• \end{array}\]

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Definitions:

Labor Efficiency Variance

A measure of the difference between the actual hours worked and the standard hours expected to produce a certain level of output.

Standard Cost System

An accounting method that uses cost estimates for labor, materials, and overhead to assign costs to products, facilitating variance analysis between expected and actual costs.

Actual Results

The real financial or operational outputs of a business, as opposed to projections or estimates.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead allocated, based on activity level.