Indicate Whether Each of the Actions Listed Below Will Immediately

question 94

Essay

Indicate whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is greater than 1.0 before the action is taken.
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Definitions:

Spending Variance

The difference between the budgeted amount allocated for an expense and the actual amount spent.

Budgeting

The process of creating a plan to spend your money, outlining where income is earned and how expenses are allocated.

Planning Budget

A financial plan that outlines projected income and expenses over a future period, used to guide a business's strategic planning.

Revenue Variance

This is the difference between actual revenue earned and the expected or budgeted revenue.