1. The fixed overhead rate is computed as_____. a. budgeted fixed manufacturing overhead / expected volume of production b. actual fixed manufacturing overhead / actual volume of production c. budgeted fixed manufacturing overhead / actual volume of production d. actual fixed manufacturing overhead / expected volume of production2. The _____ discloses the economic resources of the organization and the claims against these resources.a. balance sheetb. income statementc. statement of cash flowsd. statement of retained earnings3.Identify which one of the following statements is false.a. Owners equity solely represents the profits made by an organization in the current period.b. Assets are economic resources that are expected to benefit future cash inflows or reduce future cash outflows.c. Liabilities are economic obligations or claims against the assets of an organization by outsiders.d. Assets must always equal the sum of liabilities and owners equity.4. The accrual basis of accounting recognizes the impact of transactions on the financial statements in the period when _____.a. revenues are earned and expenses are incurredb. cash is received or disbursedc. the transaction occursd. the accounting equation is decreased