A person who assumes an existing mortgage loan is
A) not personally liable for the repayment of the debt.
B) not in danger of losing the property by default.
C) personally responsible for paying the principal balance.
D) generally released from liability, but not always.
Answer: C) personally responsible for paying the principal balance.
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The Plant Assets account and Accumulated Depreciation--Plant Assets account of Star Media show the following: ...Star Media sold plant assets at an $ 11m 000 loss. Where on the statement of cash flows should Star Media report the sale of plant assets? How much should the business report for the sale?
A. Financing cash flows--cash receipt of $ 42, 000 B. Investing cash flows--cash receipt of $ 53, 000 C. Investing cash flows--cash receipt of $ 31, 000 D. Investing cash flows--cash receipt of $ 42, 000
The Carolina Rubber Products Company completed the flexible budget analysis for the second quarter, which is given below
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Units 12,840 0 12,840 840 F 12,000 Sales Revenue $62,740 $1,290 U $64,030 $3,970 F $60,060 Variable Costs 27,530 590 U 26,940 $1,740 U 25,200 Contribution Margin $35,210 $1,880 U $37,090 $2,230 F $34,860 Fixed Costs 34,240 180 U 34,060 $0 34,060 Operating Income/(Loss) $970 $2,060 U $3,030 $2,230 F $800 Which of the following would be a correct analysis of the sales volume variance for sales revenue? A) increase in sales price per unit B) increase in sales volume C) increase in variable cost per unit D) increase in fixed costs