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

1. Introduction to Accounting

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

Motherboards, Inc. manufactures computer parts. The company's total revenue is best defined as:

The value of inventory on hand at the end of the period.

The net profit after all expenses have been subtracted from sales.

The total cash received from customers during the period.

The total amount earned from sales of goods or services before any expenses are deducted.

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Verified step by step guidance

Understand the concept of total revenue: Total revenue refers to the total amount earned by a company from the sale of goods or services before any expenses are deducted. It is not the same as net profit, cash received, or inventory value.

Eliminate incorrect options: The value of inventory on hand at the end of the period is related to assets, not revenue. Net profit is calculated after deducting expenses, which is not the definition of total revenue. Total cash received from customers during the period may include other cash inflows, not just revenue.

Focus on the correct definition: Total revenue is the gross amount earned from sales of goods or services, regardless of whether the cash has been received or expenses have been deducted.

Relate to financial statements: Total revenue is typically reported at the top of the income statement as 'Sales Revenue' or 'Revenue.' It represents the starting point for calculating net income.

Apply the definition to the problem: Based on the explanation, the correct answer is the total amount earned from sales of goods or services before any expenses are deducted.