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

Contributions made by an employee to a qualified retirement plan are required to be:

reported as a deduction from gross income on the employee's tax return

recorded as a liability on the employer's balance sheet

included as taxable income in the year contributed

classified as an expense on the employee's income statement

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Verified step by step guidance

Understand the nature of a qualified retirement plan: A qualified retirement plan is a tax-advantaged plan that meets specific requirements set by the IRS. Contributions to such plans are typically tax-deferred, meaning they are not included in taxable income in the year they are made.

Analyze the role of the employee: When an employee contributes to a qualified retirement plan, the contribution is deducted from their gross income before calculating taxable income. This reduces the employee's taxable income for the year.

Consider the employer's perspective: The employer withholds the contribution from the employee's paycheck and records it as a liability until the funds are transferred to the retirement plan. This ensures proper accounting for the employer's obligation to remit the funds.

Evaluate the tax implications: Contributions to a qualified retirement plan are not included as taxable income in the year they are contributed. Instead, taxes are deferred until the funds are withdrawn, typically during retirement.

Clarify the classification: Contributions made by the employee are not classified as an expense on the employee's income statement. Instead, they are treated as a reduction in gross income for tax purposes.