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 the five elements of the accounting equation?

Assets, Liabilities, Equity, Revenues, Expenses

Assets, Liabilities, Capital, Drawings, Sales

Assets, Liabilities, Cash, Inventory, Equity

Assets, Liabilities, Equity, Dividends, Supplies

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Verified step by step guidance

Understand the accounting equation: The accounting equation is the foundation of financial accounting and represents the relationship between a company's assets, liabilities, and equity. It is expressed as Assets = Liabilities + Equity.

Recognize the five elements of the accounting equation: In addition to the basic equation, revenues and expenses are included to reflect the company's performance over time. These elements are Assets, Liabilities, Equity, Revenues, and Expenses.

Analyze the options provided: Compare each option to the five elements of the accounting equation. For example, 'Assets, Liabilities, Equity, Revenues, Expenses' matches the correct elements, while other options include terms like 'Capital,' 'Drawings,' 'Sales,' 'Cash,' 'Inventory,' 'Dividends,' and 'Supplies,' which are not part of the five elements.

Eliminate incorrect options: Remove options that include terms not part of the accounting equation, such as 'Dividends' and 'Supplies,' which are specific accounts but not fundamental elements.

Select the correct answer: Based on the analysis, choose the option that lists the five elements of the accounting equation accurately: 'Assets, Liabilities, Equity, Revenues, Expenses.'