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

3. Accrual Accounting Concepts

Revenue Recognition and Expense Recognition

Financial Accounting

3. Accrual Accounting Concepts

Revenue Recognition and Expense Recognition

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Multiple Choice

When an organization asks questions such as "Why was revenue so high?", what type of activity is it performing?

Revenue recognition

Financial statement analysis

Expense matching

Journal entry preparation

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Verified step by step guidance

Understand the context of the question: The organization is analyzing why revenue was high, which involves interpreting financial data to understand trends, causes, and implications.

Recognize that this activity is part of Financial Statement Analysis, which focuses on evaluating financial statements to assess the organization's performance, profitability, and financial health.

Differentiate Financial Statement Analysis from other accounting activities such as Revenue Recognition (determining when revenue should be recorded), Expense Matching (aligning expenses with revenues), and Journal Entry Preparation (recording transactions in the accounting system).

Identify that Financial Statement Analysis involves reviewing and interpreting financial metrics, ratios, and trends to answer questions about revenue, expenses, and other financial elements.

Conclude that the correct answer is Financial Statement Analysis, as it directly relates to understanding why revenue was high by analyzing financial data and performance indicators.