Using Account Analysis, What Type of Cost Is the Local

question 2

Multiple Choice

Using account analysis, what type of cost is the local phone service which charges a flat fee for unlimited local calls?

• A) Fixed
• B) Mixed
• C) Step
• D) Variable

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Definitions:

Balance Sheet

A report showing a business's assets, debts, and owner's equity on a particular date.

Long-Term Liabilities

Company debts that are payable beyond a year from now.

Capital Leases Payable

The liability account that records the present value of future lease payments for assets obtained through capital leases.

Unearned Revenues

Money received by a company for goods or services yet to be delivered or performed.