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 one of the following statements related to corporate income taxes is correct?

Corporate income taxes are recorded as a liability only when paid.

Corporate income taxes are deducted from retained earnings directly.

Corporate income taxes are not recognized under accrual accounting.

Corporate income taxes are considered an expense on the income statement.

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Verified step by step guidance

Understand the concept of corporate income taxes: Corporate income taxes are the taxes a corporation pays on its taxable income, and they are considered an expense incurred during the normal course of business operations.

Review the treatment of corporate income taxes under accrual accounting: Accrual accounting requires that expenses, including corporate income taxes, be recognized in the period they are incurred, regardless of when they are paid.

Clarify the role of corporate income taxes on the financial statements: Corporate income taxes are recorded as an expense on the income statement, reducing the net income for the period.

Explain why corporate income taxes are not deducted directly from retained earnings: Retained earnings are affected indirectly through the reduction in net income, which is calculated after deducting expenses, including corporate income taxes.

Highlight why corporate income taxes are recorded as a liability when incurred: Under accrual accounting, if corporate income taxes are owed but not yet paid, they are recorded as a liability on the balance sheet, reflecting the obligation to pay in the future.