The Controller for Tires and More,Inc

question 71

Multiple Choice

The controller for Tires and More,Inc.has recorded the following transactions during the month: the purchase of supplies on credit,$4,200;receipt of a bill for utilities for the month which is due on the 15th of the next month,$1,200;and,partial payment on the balance due for supplies,$800.What is the balance in the Accounts Payable account at the end of the month assuming a beginning balance of $0,and is the balance a debit or a credit?

• A)$4,600 debit.
• B)$4,600 credit.
• C)$3,400 credit.
• D)$5,400 credit.

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Definitions:

Flexible Budget

A budget that adjusts to changes in the volume of activity, allowing for more accurate budgeting and financial control.

Expenditure

The act of spending money for goods or services, encompassing both capital and operational expenses.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the standard variable overhead costs expected for the actual production level.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under current or anticipated operating conditions.