Multiple Choice
In the context of journal entries for standard costing, which variance is calculated using the formula: (actual cost per unit - standard cost per unit) \( \times \) actual quantity?
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2. Transaction Analysis
Journal Entries: Debits and Credits
Multiple Choice
In the context of recording journal entries, if a formula in cell D49 calculates the debit amount for a transaction and is copied to cell E49, which of the following is most likely to occur?
A
The formula will automatically convert the debit amount to a negative value in column E.
B
The formula will reference the corresponding cells in column E, potentially shifting the calculation to a new account or amount.
C
The formula will remain unchanged and continue to reference column D.
D
The formula will adjust to calculate the credit amount for the transaction in column E.
Verified step by step guidance1
Understand the concept of relative referencing in spreadsheet formulas. When a formula is copied from one cell to another, the cell references within the formula adjust relative to the new location unless absolute references are used.
Analyze the scenario: The formula in cell D49 calculates the debit amount for a transaction. When copied to cell E49, the formula will reference the corresponding cells in column E, as the relative referencing mechanism shifts the column reference.
Consider the implications of this shift. The formula in E49 will now calculate based on the data in column E, which may represent a different account or amount depending on the spreadsheet's structure.
Clarify that the formula does not automatically convert the debit amount to a negative value or adjust to calculate the credit amount unless explicitly programmed to do so. The formula simply adapts to the new cell references.
Conclude that the most likely outcome is that the formula will reference the corresponding cells in column E, potentially shifting the calculation to a new account or amount, as this aligns with the behavior of relative referencing in spreadsheets.
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