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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following entries affect a company's cash flows?

Accruing interest revenue

Recognition of unearned revenue

Recording depreciation expense

Payment of salaries to employees

Previous problemNext problem

Verified step by step guidance

Understand the concept of cash flows: Cash flows refer to the inflow and outflow of cash and cash equivalents in a company. Transactions that involve actual movement of cash will affect cash flows, while non-cash transactions will not.

Analyze each option: Start by identifying whether each transaction involves cash movement. For example, accruing interest revenue records revenue earned but not yet received in cash, so it does not affect cash flows.

Evaluate the recognition of unearned revenue: This involves adjusting liabilities and revenue accounts when a company earns revenue that was previously received as cash. The cash was already received earlier, so this recognition does not affect cash flows at the time of adjustment.

Consider recording depreciation expense: Depreciation is a non-cash expense that allocates the cost of a tangible asset over its useful life. Since no cash is involved, this does not affect cash flows.

Examine the payment of salaries to employees: This transaction involves the actual outflow of cash to employees, which directly reduces the company's cash balance. Therefore, this is the transaction that affects cash flows.