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

A sales commission is an example of a ________ compensation plan.

deferred

non-monetary

fixed

variable

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Verified step by step guidance

Understand the concept of a sales commission: A sales commission is a form of compensation that is directly tied to the performance or sales generated by an employee.

Review the types of compensation plans: Deferred compensation refers to payments made at a later date, non-monetary compensation involves benefits other than cash, fixed compensation is a set amount regardless of performance, and variable compensation changes based on performance.

Identify the characteristics of a variable compensation plan: Variable compensation fluctuates based on measurable outcomes, such as sales performance, making it directly linked to the employee's achievements.

Compare the options provided in the question: Sales commission aligns with the definition of variable compensation because it depends on the sales generated by the employee.

Conclude that the correct answer is 'variable' because sales commission is a performance-based form of compensation that varies depending on the employee's sales results.