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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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 types of costs is most relevant in making short-term business decisions?

Allocated fixed costs that do not change with the decision

Historical costs from previous periods

Variable costs that will change as a result of the decision

Sunk costs that have already been incurred

Previous problemNext problem

Verified step by step guidance

Understand the concept of relevant costs: Relevant costs are those costs that will be directly affected by a specific decision. They are future costs that differ between alternatives.

Review the types of costs mentioned: Allocated fixed costs, historical costs, variable costs, and sunk costs. Each type has distinct characteristics that determine its relevance in decision-making.

Analyze allocated fixed costs: These are fixed costs distributed across different departments or products. Since they do not change with the decision, they are not relevant for short-term decision-making.

Examine historical costs and sunk costs: Historical costs are past costs and sunk costs are costs that have already been incurred. Both are irrelevant for decision-making because they cannot be changed by future actions.

Focus on variable costs: Variable costs are costs that change directly with the level of activity or decision. Since they are affected by the decision, they are the most relevant for short-term business decisions.