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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

Which of the following are principal components of a master budget?

General ledger, subsidiary ledger, and journal entries

Operating budget, financial budget, and capital expenditure budget

Cash flow statement, retained earnings statement, and tax return

Trial balance, income statement, and balance sheet

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Verified step by step guidance

Understand the concept of a master budget: A master budget is a comprehensive financial planning document that includes various individual budgets, which together provide a complete picture of an organization's financial activities for a specific period.

Identify the principal components of a master budget: The master budget typically consists of three main components: the operating budget, the financial budget, and the capital expenditure budget.

Clarify the purpose of each component: The operating budget focuses on day-to-day operations and includes budgets like sales, production, and operating expenses. The financial budget includes the cash budget and budgeted financial statements (e.g., budgeted income statement and balance sheet). The capital expenditure budget outlines planned investments in long-term assets.

Eliminate incorrect options: Review the provided options and eliminate those that do not align with the components of a master budget. For example, 'general ledger, subsidiary ledger, and journal entries' are accounting records, not components of a master budget. Similarly, 'cash flow statement, retained earnings statement, and tax return' are financial reports, not budget components.

Select the correct answer: Based on the understanding of the master budget's components, the correct answer is 'Operating budget, financial budget, and capital expenditure budget.'