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

Sample Financial Statements - Coca Cola

Financial Accounting

1. Introduction to Accounting

Sample Financial Statements - Coca Cola

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Multiple Choice

Based on the following information from Shep Company's records: $ \text{Sales Revenue} = \$500,000 $, $ \text{Cost of Goods Sold} = \$300,000 $, and $ \text{Operating Expenses} = \$120,000 $, what is Shep Company's net income?

$120,000

$80,000

$200,000

$180,000

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Verified step by step guidance

Step 1: Understand the formula for calculating net income. Net income is calculated as: $ \text{Net Income} = \text{Sales Revenue} - \text{Cost of Goods Sold} - \text{Operating Expenses} $.

Step 2: Identify the values provided in the problem. $ \text{Sales Revenue} = \$500,000 $, $ \text{Cost of Goods Sold} = \$300,000 $, and $ \text{Operating Expenses} = \$120,000 $.

Step 3: Substitute the given values into the formula. The equation becomes: $ \text{Net Income} = \$500,000 - \$300,000 - \$120,000 $.

Step 4: Perform the subtraction step by step. First, subtract $ \text{Cost of Goods Sold} $ from $ \text{Sales Revenue} $: $ \$500,000 - \$300,000 $. Then subtract $ \text{Operating Expenses} $ from the result.

Step 5: The final result after performing the calculations will give you Shep Company's net income. Compare this result to the provided answer choices to select the correct one.