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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

What is the first step in creating a budget?

Allocating funds to different departments

Identifying and estimating expected revenues and expenses

Comparing actual results to the budget

Approving the budget with management

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Verified step by step guidance

Understand the purpose of a budget: A budget is a financial plan that outlines expected revenues and expenses over a specific period. It helps in resource allocation, financial control, and decision-making.

Identify and estimate expected revenues: Begin by forecasting the income or revenue streams for the organization, such as sales, services, or other sources of income. This step involves analyzing historical data, market trends, and future projections.

Estimate expected expenses: Determine the costs associated with operations, including fixed costs (e.g., rent, salaries) and variable costs (e.g., utilities, raw materials). This step ensures that all potential expenditures are accounted for.

Compare revenues and expenses: Analyze the relationship between expected revenues and expenses to ensure the budget is balanced or to identify any potential shortfalls or surpluses.

Prepare a draft budget: Compile the estimated revenues and expenses into a structured format, which can then be reviewed and approved by management or relevant stakeholders.