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

2. Transaction Analysis

Classified Balance Sheet Components

Financial Accounting

2. Transaction Analysis

Classified Balance Sheet Components

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Multiple Choice

Which of the following is NOT a balance sheet account?

Inventory

Accounts Payable

Service Revenue

Accounts Receivable

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Understand the structure of a balance sheet: A balance sheet is a financial statement that reports a company's assets, liabilities, and equity at a specific point in time. It includes accounts that represent these categories.

Identify the accounts listed in the problem: Inventory, Accounts Payable, Service Revenue, and Accounts Receivable.

Classify each account: Inventory and Accounts Receivable are asset accounts, Accounts Payable is a liability account, and Service Revenue is a revenue account.

Recognize that revenue accounts are part of the income statement, not the balance sheet. Service Revenue is used to report income earned during a period, which is not included in the balance sheet.

Conclude that Service Revenue is NOT a balance sheet account because it belongs to the income statement, while the other accounts listed are part of the balance sheet.