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

Which of the following statements is the best definition of an asset?

An asset is the residual interest in the assets of the entity after deducting liabilities.

An asset is a record of all revenues and expenses for a specific period.

An asset is a resource owned or controlled by a company that is expected to provide future economic benefits.

An asset is any obligation that a company must settle in the future.

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Verified step by step guidance

Step 1: Understand the definition of an asset. An asset is a resource owned or controlled by a company that is expected to provide future economic benefits. This is a key concept in financial accounting and is part of the accounting equation: Assets = Liabilities + Equity.

Step 2: Analyze the provided options. The first option describes equity, which is the residual interest in the assets of the entity after deducting liabilities. This is not the definition of an asset.

Step 3: Evaluate the second option. It refers to a record of revenues and expenses, which is related to the income statement, not the definition of an asset.

Step 4: Review the third option. It correctly defines an asset as a resource owned or controlled by a company that is expected to provide future economic benefits. This aligns with the accounting framework.

Step 5: Examine the fourth option. It describes a liability, which is an obligation that a company must settle in the future, not an asset. Therefore, the correct answer is the third option.