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

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 type of cost is most commonly associated with the maintenance section in accounting?

Direct material costs

Research and development costs

Indirect costs (overhead)

Selling expenses

Previous problemNext problem

Verified step by step guidance

Understand the concept of indirect costs (overhead): These are costs that cannot be directly traced to a specific product or service but are necessary for the overall operation of the business. Examples include maintenance, utilities, and administrative expenses.

Recognize that maintenance costs are typically categorized as indirect costs because they support the overall functioning of the business rather than being directly tied to the production of goods or services.

Differentiate indirect costs from direct costs: Direct costs, such as direct material costs, are directly attributable to the production of specific goods or services. Maintenance costs do not fall into this category.

Compare indirect costs with other categories like research and development costs and selling expenses: Research and development costs are associated with innovation and product development, while selling expenses relate to marketing and sales activities. Maintenance costs do not align with these categories.

Conclude that maintenance costs are most commonly associated with indirect costs (overhead) in accounting, as they are essential for the general operation of the business but not directly tied to production or sales.