Claymore Corp

question 33

Multiple Choice

Claymore Corp. has the following information about its standards and production activity for September. The controllable variance is:

• A) $1,295U.
• B) $1,295F.
• C) $2,400U.
• D) $2,400F.
• E) $3,695U.

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Definitions:

Liabilities

Liabilities that a business must settle in the future, representing the financial debts owed to external parties.

Prepaid Expenses

Costs that have been paid in advance for goods or services to be received in the future.

Unearned Revenues

Money received by a company for goods or services that have not yet been provided to the customer.

Adjusting Entries

Journal entries made in an accounting period to allocate income and expenditure to the correct periods.