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

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

A measurable obligation arising from agreements, contracts, or laws is called a:

revenue

asset

equity

liability

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Verified step by step guidance

Understand the definition of a liability: A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits.

Analyze the problem statement: It mentions a measurable obligation arising from agreements, contracts, or laws. This aligns with the definition of a liability, as liabilities are obligations that the entity is required to settle.

Compare the given options: Revenue refers to income earned, assets are resources owned by the entity, and equity represents the residual interest in the assets after deducting liabilities. None of these options describe an obligation.

Confirm the correct answer: Since the problem specifies a measurable obligation, the correct classification is 'liability,' as it matches the definition provided.

Conclude the reasoning: A liability is the correct answer because it represents obligations that arise from agreements, contracts, or laws, requiring settlement in the future.