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

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

Which of the following is an example of a cost that a department manager would NOT control, and is therefore considered a liability outside their direct responsibility?

Interest payable on company-wide loans

Wages of employees within the department

Supplies purchased for departmental use

Utility expenses specific to the department

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Verified step by step guidance

Understand the concept of controllable and uncontrollable costs: Controllable costs are those that a manager can influence or regulate within their department, such as wages, supplies, and utility expenses specific to the department. Uncontrollable costs are those outside the manager's direct control, such as company-wide expenses.

Analyze each option provided in the problem: Determine whether each cost is directly influenced by the department manager or if it is a company-wide expense.

Option 1: Interest payable on company-wide loans - This is a company-wide expense and is not specific to the department. It is outside the department manager's control.

Option 2: Wages of employees within the department - These are directly managed by the department manager, as they can influence hiring, scheduling, and payroll decisions.

Option 3: Supplies purchased for departmental use and Option 4: Utility expenses specific to the department - Both are specific to the department and can be controlled by the manager through budgeting and usage policies.