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

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

Which of the following statements is true about the chart of accounts?

It is a listing of all accounts used by a company in its general ledger.

It only includes asset and liability accounts.

It is a financial statement that shows a company's revenues and expenses.

It is prepared at the end of each accounting period to summarize account balances.

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Verified step by step guidance

Step 1: Understand the concept of a chart of accounts. A chart of accounts is a structured list of all accounts used by a company in its general ledger. It serves as an organizational tool to categorize financial transactions and is not a financial statement.

Step 2: Analyze the first option: 'It is a listing of all accounts used by a company in its general ledger.' This statement aligns with the definition of a chart of accounts, as it is indeed a comprehensive list of accounts.

Step 3: Evaluate the second option: 'It only includes asset and liability accounts.' This statement is incorrect because a chart of accounts includes all types of accounts, such as assets, liabilities, equity, revenues, and expenses.

Step 4: Assess the third option: 'It is a financial statement that shows a company's revenues and expenses.' This is incorrect because a chart of accounts is not a financial statement; it is a tool for organizing accounts.

Step 5: Review the fourth option: 'It is prepared at the end of each accounting period to summarize account balances.' This is incorrect because the chart of accounts is not prepared periodically; it is a static list used throughout the accounting process.