When preparing the budgeted income statement of a merchandising company, the amount of cost of goods sold can be taken from the ________.
A) budgeted balance sheet
B) cost of goods sold budget
C) inventory, purchases, and cost of goods sold budget
D) capital expenditures budget
C) inventory, purchases, and cost of goods sold budget
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Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 2.5% charge on sales for using its card. On May 26, Brinker had $6600 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit?
A. Debit Cash $6435; debit Credit Card Expense $165; credit Sales $6600. B. Debit Accounts Receivable $6600; credit Sales $6600. C. Debit Cash $6765; credit Credit Card Expense $165; credit Sales $6600. D. Debit Accounts Receivable $6435; debit Credit Card Expense $165; credit Sales $6600. E. Debit Cash $6600; credit Sales $6600.
A check of $300,000, deposited by a company, was returned to the bank for nonsufficient funds. How would this information be included on the bank reconciliation?
A) a deduction on the bank side B) an addition on the bank side C) an addition on the book side D) a deduction on the book side
Which of the following is NOT a common characteristic of issuing short-term debt?
A) Issuing short-term debt increases uncertainty compared to a long-term fixed-rate issue. B) Issuing short-term debt provides more frequent financing opportunities. C) Short-term interest rates are typically HIGHER than long-term rates. D) Short-term debt financing could be problematic in the event of an economy-wide liquidity crisis.
Fager Clinic uses client-visits as its measure of activity. During February, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,250 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for February:Data used in budgeting: Fixed element per monthVariable element per client-visitRevenue - $68.20 Personnel expenses$32,300 $21.50Medical supplies 1,200 12.50Occupancy expenses 9,700 3.40Administrative expenses 5,000 0.10Total expenses$48,200 $37.50?Actual results for February: ?Revenue$156,210 Personnel expenses$80,445?Medical supplies$30,105?Occupancy expenses$16,800?Administrative expenses$5,015???The spending variance for medical supplies
in February would be closest to: A. $780 F B. $1,405 U C. $780 U D. $1,405 F