If the Balance Sheet Shows the Same Beginning and Ending

question 108

Multiple Choice

If the balance sheet shows the same beginning and ending balance for depreciable assets, there

• A)have been no financing activities during the year.
• B)have been no investing activities during the year.
• C)may have been investing activities.
• D)may have been financing activities.
• E)have been no investing and financing activities during the year.

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Definitions:

Fixed Overhead Volume

Analysis dedicated to assessing how changes in production volume impact fixed manufacturing overhead costs.

Variable Component

A part of cost or expense that fluctuates with changes in production volume or activity level.

Fixed Component

Part of a company's costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated based on estimated costs and activity levels before the actual costs are known.