A Company Issued a Check for $7,900 in Payment of the Salaries

question 118

Multiple Choice

A company issued a check for $7,900 in payment of the salaries expense for the last half of the month. Identify the journal the transaction would be recorded in.

• A) Cash disbursements journal.
• B) Sales journal.
• C) Cash receipts journal.
• D) Purchases journal.
• E) General journal.

Identify and calculate the revenue variance for different months.

Calculate and analyze the variance for net operating income comparing actual results to the flexible budget for various months.

Understand the difference between favorable and unfavorable variances and their implications on budget performance.

Calculate the materials quantity variance and understand its impact on manufacturing efficiency.

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Definitions:

Total Assets

The total sum of all assets, both current and non-current, owned by a business.

Average Collection

The average period of time it takes for a business to receive payments owed by its customers.

Debt-to-equity Ratio

A measure of how a company's assets are financed, comparing the roles of shareholder equity and debt.

Return on Equity

A metric indicating financial success determined by dividing a company's net income by its shareholders' equity, demonstrating the efficacy of using investments to create increased profits.