Everest Acres Development Corporation Recently Sold a Parcel of Land

question 69

Multiple Choice

Everest Acres Development Corporation recently sold a parcel of land for $50,000 more than its cost.This transaction:

• A)Increased assets and liabilities.
• B)Increased shareholders' equity and assets.
• C)Reduced assets and shareholder's equity.
• D)Increased assets and left liabilities and shareholder's equity unchanged.

Understand the concept of double-entry accounting and how it is implemented in QuickBooks transactions.

Recognize the different lists available in QuickBooks and their purpose, including Customer List, Vendor List, and Item List.

Familiarize with the QuickBooks Home Page layout and where to access various forms and transactions.

Understand the journal entries QuickBooks automatically records behind the scenes for different transactions.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost, based on standards set for quantity and price.

Actual Operations

The real-world activities carried out by a company, as opposed to planned or projected operations.

Materials Quantity Variance

The difference between the actual amount of materials used in production and the standard amount expected to be used, multiplied by the standard cost of the materials.