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

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Multiple Choice

Which of the following statements concerning direct and indirect costs is NOT true?

Direct costs can be easily traced to a specific cost object.

Indirect costs are always variable costs.

Indirect costs cannot be conveniently traced to a single cost object.

Direct materials used in production are considered direct costs.

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Verified step by step guidance

Understand the definitions of direct and indirect costs: Direct costs are expenses that can be easily and directly traced to a specific cost object, such as a product, department, or project. Indirect costs, on the other hand, are expenses that cannot be conveniently traced to a single cost object and are often shared across multiple cost objects.

Analyze the statement 'Direct costs can be easily traced to a specific cost object': This is true because direct costs, such as direct materials and direct labor, are directly attributable to a specific cost object.

Evaluate the statement 'Indirect costs are always variable costs': This is NOT true. Indirect costs can be either fixed (e.g., rent, utilities) or variable (e.g., indirect materials used in production). Therefore, this statement is incorrect.

Review the statement 'Indirect costs cannot be conveniently traced to a single cost object': This is true because indirect costs, such as factory overhead, are shared across multiple cost objects and cannot be directly assigned to one specific object.

Assess the statement 'Direct materials used in production are considered direct costs': This is true because direct materials are a type of direct cost that can be directly traced to the production of specific goods or services.