If the GDP Deflator in 2009 Was 160 and the GDP

question 127

True/False

If the GDP deflator in 2009 was 160 and the GDP deflator in 2010 was 180, then the inflation rate in 2010 was 12.5%.

Understand and calculate cash flows associated with interest, supplies, salaries, and revenue.

Calculate correct net income including adjustments for revenues, expenses, and depreciation.

Understand the difference between cash basis and accrual basis of accounting.

Determine the effect of unrecorded information on financial statements.

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Definitions:

Controllable Variance

The difference between the actual amount of variable factory overhead cost incurred and the amount of variable factory overhead budgeted for the standard product.

Factory Overhead

The indirect costs associated with manufacturing, such as utilities, maintenance, and salaries for management.

Budgeted Amount

Financial projections or planned amounts set aside for specific purposes, revenues, or expenses during a budget period.

Quantity Variance

The difference between the expected amount of materials or products required for production and the actual amount used, affecting budget or efficiency evaluations.