Which of the Following Statements Is Correct

question 67

Multiple Choice

Which of the following statements is correct?

• A) A bank statement is a document from the bank that reports the activity in the customer's account.
• B) A bank statement must be mailed to customers each month.
• C) The bank statement does not include an ending balance of the customer's account because the bank cannot determine which checks have been cashed during the statement period.
• D) Physical copies of canceled checks must be included in the monthly bank statement.

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Definitions:

Raw Materials Price Variance

The difference between the actual cost of raw materials and the expected (or standard) cost.

Raw Materials Quantity Variance

It measures the difference between the expected amount of raw materials needed for production and the actual amount used.

Standard Cost

A predetermined cost of manufacturing a single unit or a specified quantity of a particular product or service, used as a benchmark to measure performance.

Direct Material

Raw materials that are directly attributable to the product being manufactured and can be easily traced in the manufacturing process.