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 is an example of a variable cost for an amusement park?

Wages paid to ride operators based on the number of hours worked

Depreciation expense on amusement park rides

Annual property insurance premiums

Monthly salary of the park manager

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Verified step by step guidance

Understand the concept of variable costs: Variable costs are expenses that change in proportion to the level of activity or output. In this case, the activity is related to the operations of the amusement park.

Analyze each option provided in the problem: Determine whether each cost changes based on the level of activity or remains fixed regardless of activity levels.

Option 1: 'Wages paid to ride operators based on the number of hours worked' - This is a variable cost because the wages depend on the number of hours worked, which can vary based on park activity.

Option 2: 'Depreciation expense on amusement park rides' - Depreciation is a fixed cost because it does not change with the level of activity; it is based on the allocation of the asset's cost over time.

Option 3: 'Annual property insurance premiums' and Option 4: 'Monthly salary of the park manager' - Both are fixed costs because they do not fluctuate with the level of activity or output in the park.