The Following Company Information Is Available for January

question 111

Multiple Choice

The following company information is available for January:

The direct material quantity variance is:

• A) $5,000 favorable.
• B) $300 favorable.
• C) $5,300 unfavorable.
• D) $5,000 unfavorable.
• E) $5,300 favorable.

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Definitions:

Capital Account

An account on a national level that records transactions of assets, liabilities, and investments between domestic and foreign entities.

Understated

A term used when financial records show a figure to be less than the actual amount, indicating a discrepancy or error.

Asset Account

Accounts that represent the different types of resources owned by a business, which have economic value and can provide future benefits.

Liability Account

records and tracks obligations or debts that a company owes to others, such as loans, mortgages, accounts payable, and other financial liabilities.