Which of the following statements is true?
A) Appropriations of retained earnings require journal entries, but restrictions on retained earnings are usually reported in notes to the financial statements.
B) No journal entries are needed to appropriate or restrict retained earnings.
C) Both appropriations and restrictions of retained earnings require journal entries.
D) Restrictions on retained earnings must be journalized, but appropriations are usually reported in notes to the financial statements.
A
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A business paid $7,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to
A) increase one asset, decrease another asset B) decrease an asset, decrease a liability C) increase an asset, increase a liability D) increase an asset, increase owner's equity
When a negative amount is in the base period and a positive amount is in the analysis period (or vice versa), a meaningful percent change cannot be calculated.
Answer the following statement true (T) or false (F)
Use the following data to find the direct labor efficiency variance if the company produced 3,500 units during the period. Direct labor standard (4 hrs. @ $12/hr.)$48per unitActual hours worked 12,250 Actual rate per hour$12.50
A. $7,000 unfavorable. B. $7,000 favorable. C. $21,000 favorable. D. $6,125 favorable. E. $6,125 unfavorable.