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

3. Accrual Accounting Concepts

Revenue Recognition and Expense Recognition

Financial Accounting

3. Accrual Accounting Concepts

Revenue Recognition and Expense Recognition

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following transactions would cause net income for the period to decrease?

Recording depreciation expense for the period

Issuing common stock to investors

Collecting cash from a customer for a previous credit sale

Borrowing money from a bank

Previous problemNext problem

Verified step by step guidance

Understand the concept of net income: Net income is calculated as revenues minus expenses, taxes, and other deductions. Any transaction that increases expenses or reduces revenues will decrease net income.

Analyze the transaction 'Recording depreciation expense for the period': Depreciation expense is a non-cash expense that represents the allocation of the cost of a tangible asset over its useful life. Recording depreciation increases expenses, which reduces net income.

Analyze the transaction 'Issuing common stock to investors': Issuing common stock is a financing activity that increases equity but does not affect revenues or expenses. Therefore, it does not impact net income.

Analyze the transaction 'Collecting cash from a customer for a previous credit sale': Collecting cash for a previous credit sale is a cash flow activity that affects the balance sheet but does not impact revenues or expenses, as the revenue was already recognized when the credit sale occurred.

Analyze the transaction 'Borrowing money from a bank': Borrowing money is a financing activity that increases liabilities but does not affect revenues or expenses directly. Therefore, it does not impact net income.