1) Both accounts receivable and notes receivable represent claims that are expected to
be collected in cash.
2) The excess of cash flowing in from revenues over the cash flowing out for expenses
is termed net cash flow.
3) Rights that are short-term in nature are called intangible assets.
4) If the standard to produce a given amount of product is 600 direct labor hours at $17
and the actual was 500 hours at $15, the direct labor time variance was $1,700
favorable.