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 fixed expense?

Sales commissions

Utility bills based on usage

Monthly office rent

Raw materials cost

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Verified step by step guidance

Step 1: Understand the concept of fixed expenses. Fixed expenses are costs that remain constant over a specific period, regardless of the level of business activity or production. These expenses do not fluctuate with changes in sales or usage.

Step 2: Analyze each option provided in the problem. Sales commissions are variable expenses because they depend on the volume of sales. Utility bills based on usage are also variable expenses since they change based on consumption.

Step 3: Consider the nature of monthly office rent. Monthly office rent is a fixed expense because it is a predetermined amount that does not change based on business activity or production levels.

Step 4: Evaluate raw materials cost. Raw materials cost is a variable expense because it depends on the quantity of goods produced or sold.

Step 5: Conclude that the correct example of a fixed expense from the options provided is monthly office rent, as it remains constant regardless of business activity.