Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is a period cost?

Direct labor

Direct materials

Sales commissions

Factory rent

Previous problemNext problem

Verified step by step guidance

Understand the concept of period costs: Period costs are expenses that are not directly tied to the production process. They are incurred during a specific time period and are typically related to selling, administrative, or general business operations.

Differentiate between product costs and period costs: Product costs include direct materials, direct labor, and manufacturing overhead, which are directly associated with the production of goods. Period costs, on the other hand, are not tied to production and are expensed in the period they are incurred.

Analyze the options provided: Direct labor and direct materials are product costs because they are directly involved in the manufacturing process. Factory rent is also a product cost as it is part of manufacturing overhead.

Identify the correct period cost: Sales commissions are considered a period cost because they are related to selling activities and are not part of the production process.

Conclude that sales commissions are the correct answer, as they align with the definition of period costs and are incurred during a specific time period for selling activities.