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 correctly lists the four main categories of income recognized in financial accounting?

Gross income, net income, retained earnings, and dividends

Revenue, expenses, assets, and liabilities

Earned income, portfolio income, passive income, and other income

Operating income, non-operating income, capital income, and deferred income

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Verified step by step guidance

Step 1: Understand the context of income recognition in financial accounting. Income categories are used to classify the sources and types of income a business or individual earns.

Step 2: Review the four main categories of income recognized in financial accounting. These categories typically include operating income, non-operating income, capital income, and deferred income.

Step 3: Clarify each category: Operating income refers to income generated from the core business operations. Non-operating income includes income from activities outside the primary business operations, such as interest or dividends. Capital income arises from investments or asset sales. Deferred income represents revenue received but not yet earned.

Step 4: Compare the options provided in the problem. Eliminate choices that do not align with the standard financial accounting categories. For example, 'Earned income, portfolio income, passive income, and other income' are more relevant to personal finance or tax classifications rather than financial accounting.

Step 5: Select the correct answer based on the explanation above. The correct categories in financial accounting are operating income, non-operating income, capital income, and deferred income.