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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

According to the fundamental accounting equation, after listing income in a budget, which of the following are typically the three main categories to prioritize?

Assets, liabilities, and equity

Investments, taxes, and dividends

Expenses, savings, and debt repayment

Revenue, profit, and cash flow

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Verified step by step guidance

Understand the fundamental accounting equation: Assets = Liabilities + Equity. This equation is the foundation of financial accounting and helps categorize financial activities.

Recognize that the question is asking about budgeting priorities, which are typically related to personal finance rather than the accounting equation itself.

Identify the three main categories mentioned in the correct answer: Expenses, savings, and debt repayment. These are common priorities in personal budgeting to ensure financial stability.

Relate these categories to financial accounting principles: Expenses reduce income, savings contribute to future assets, and debt repayment decreases liabilities.

Conclude that while the fundamental accounting equation is essential for understanding financial statements, budgeting priorities like expenses, savings, and debt repayment are practical applications of financial management concepts.