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 expense?

Annual insurance premiums

Depreciation expense

Direct materials used in production

Monthly office rent

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Verified step by step guidance

Understand the concept of variable expenses: Variable expenses are costs that change in proportion to the level of activity or production. These expenses increase or decrease depending on the volume of goods or services produced.

Analyze the options provided: Review each option to determine whether it is a fixed expense (does not change with production levels) or a variable expense (changes with production levels).

Option 1: Annual insurance premiums - These are fixed expenses because they are paid at a set amount regardless of production levels.

Option 2: Depreciation expense - This is a fixed expense because it is based on the allocation of the cost of an asset over its useful life, not on production levels.

Option 3: Direct materials used in production - This is a variable expense because the cost of materials changes directly with the level of production. For example, producing more units requires more raw materials, increasing the expense.