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 is NOT considered a major expense category in financial accounting?

Depreciation Expense

Cost of Goods Sold

Interest Revenue

Salaries and Wages Expense

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Verified step by step guidance

Step 1: Understand the concept of expense categories in financial accounting. Expenses are costs incurred by a business to generate revenue and operate effectively. Common expense categories include operating expenses, cost of goods sold, and non-operating expenses.

Step 2: Review the provided options: Depreciation Expense, Cost of Goods Sold, Interest Revenue, and Salaries and Wages Expense. Identify which of these are typically classified as expenses in financial accounting.

Step 3: Clarify that Depreciation Expense represents the allocation of the cost of tangible assets over their useful life, and it is considered an operating expense.

Step 4: Note that Cost of Goods Sold (COGS) is a major expense category that represents the direct costs of producing goods sold by a company, such as materials and labor.

Step 5: Recognize that Interest Revenue is not an expense but rather a form of income earned from interest on investments or loans. Salaries and Wages Expense, on the other hand, is a major operating expense related to employee compensation.