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

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Multiple Choice

Which of the following would be considered a revenue stream?

Sales of products to customers

Purchase of office equipment

Repayment of a bank loan

Payment of employee salaries

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Understand the concept of a revenue stream: A revenue stream refers to the income generated by a company from its normal business activities, typically through the sale of goods or services to customers.

Analyze each option provided in the problem: Determine whether each activity generates income or represents an expense or financial obligation.

Option 1 - Sales of products to customers: This activity involves selling goods or services, which directly generates income for the business. It is considered a revenue stream.

Option 2 - Purchase of office equipment: This activity involves spending money to acquire assets for the business. It is classified as an expense, not a revenue stream.

Option 3 - Repayment of a bank loan and Option 4 - Payment of employee salaries: Both activities involve outflows of cash to settle obligations or pay expenses, and neither generates income. Therefore, they are not revenue streams.