Bryce Canyon,CPA Is Auditing the Financing Cycle of Top Hat,Inc

question 101

Multiple Choice

Bryce Canyon,CPA is auditing the financing cycle of Top Hat,Inc.He reviews the articles of incorporation and bylaws of Top Hat in relation to the company's common stock to determine proper disclosure of which of the following?

• A)authorized shares and par value.
• B)issued shares and treasury stock outstanding.
• C)number of shares reserved for retained earnings.
• D)state of incorporation and officers.

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Definitions:

Standard Amount

The budgeted or pre-determined cost of materials, labor, and overhead that is used as a benchmark for actual costs.

Variable Manufacturing Overhead

The segment of manufacturing overhead expenses that fluctuates in relation to the volume of production output.

Actual Output

The real quantity of goods or services produced by a company, as opposed to planned or potential output.

Labor Efficiency Variance

The difference between the actual hours worked and the hours that should have been worked, considering the standard labor rate. It measures labor productivity.