acct 2302 final exam review jeopardy #1

Question 1

If a company had 2 segments which were both at breakeven, what would the NOI of the company be equal to?

Answer 1

Common Fixed Expenses

Question 2

What is the main difference between a static budget and a flexible budget

Answer 2

The static budget is prepared for a single LoA, while a flexible budget is adjusted for different activity levels