Q1) Which of the following is an example of a variable cost?
a. Insurance premium for fire insurance on the factory building.
b. The salary of the company president.
c. Wood used to make custom tables.
d. Rent for use of a storage warehouse.
e. Depreciation on the factory building.
Q2) For the following four cases, use expanded accounting equation to calculate missing quantity.
| |
Assets |
Liabilities |
Capital Stock |
Retained Earnings |
| Case A |
$20,000 |
$8,000 |
A |
$3,500 |
| Case B |
16,000 |
B |
$5,000 |
2,000 |
| Case C |
C |
11,000 |
14,000 |
32,000 |
| Case D |
46,000 |
30,000 |
20,000 |
D |