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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 $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

Accounting Basics, Accounting

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