Which of the Following Is Correct

question 71

Multiple Choice

Which of the following is correct?

• A)Unearned revenues are considered increases to stockholders' equity.
• B)Working capital is measured as current liabilities minus current assets.
• C)Working capital increases when a company pays the principal on a long-term note.
• D)Unearned revenues will eventually become revenue earneD.Unearned revenues are considered a liability account until the company has provided the services at which time the revenue will be recognized.

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Definitions:

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs attributed to a variation in produced units volume.

Supervisors

Individuals who have the responsibility to oversee and direct the work of others, ensuring that tasks are completed effectively and efficiently.

Work Flow

The sequence of industrial, administrative, or other processes through which a piece of work passes from initiation to completion.

Nonfinancial Measures

Metrics used to assess performance and operations that do not involve monetary transactions, such as customer satisfaction or employee turnover rates.