A variance is the difference between an actual and budgeted line item. If the disparity will right itself shortly, then the variance is known as temporary.

2) Accounts receivable, cash, and saving accounts are considered assets.

3) If a business wants to bring in new partners and the existing partners' shares equal 100% of the business, then each partner must sell some of their shares to any new member who wants to come into the business.

4) Net income is the difference between revenue and expenses.

5) In order to determine a return on an investment: Dive the sale price by the original price and then multiply by 100 to make a percent.

6) Credits are considered positive items in a ledger or budget.

7) Debit accounts are accounts from which items can be deducted such as expenses and assets.