Q1) Which of the following is an ex 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 find out 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 |