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 types of accounts typically have a normal credit balance?

Expense accounts

Revenue accounts

Asset accounts

Liability accounts

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Verified step by step guidance

Understand the concept of normal balances: In accounting, each type of account has a normal balance, which is the side (debit or credit) that increases the account. For example, assets typically have a normal debit balance, while liabilities and revenues typically have a normal credit balance.

Review the types of accounts: Expense accounts, revenue accounts, asset accounts, and liability accounts are all part of the accounting equation. Each has a specific normal balance based on its role in the equation.

Analyze expense accounts: Expense accounts typically have a normal debit balance because they decrease equity when recorded.

Analyze revenue accounts: Revenue accounts typically have a normal credit balance because they increase equity when recorded.

Analyze asset and liability accounts: Asset accounts typically have a normal debit balance because they represent resources owned by the business. Liability accounts typically have a normal credit balance because they represent obligations owed by the business.