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

A budget is a plan for spending money based on income, expenses, and which of the following?

Inventory turnover

Financial goals

Depreciation expense

Accounts receivable

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Verified step by step guidance

Understand the concept of a budget: A budget is a financial plan that outlines expected income and expenses over a specific period. It helps individuals or organizations allocate resources effectively.

Identify the key components of a budget: These typically include income (money coming in), expenses (money going out), and financial goals (objectives or targets for saving, investing, or spending).

Analyze the options provided in the question: Inventory turnover, depreciation expense, accounts receivable, and financial goals. Determine which one aligns with the purpose of a budget.

Recognize that financial goals are integral to budgeting: They guide decision-making and help prioritize spending and saving to achieve desired outcomes, such as buying a house, saving for retirement, or reducing debt.

Conclude that financial goals are the correct answer because they directly relate to the planning aspect of a budget, unlike inventory turnover, depreciation expense, or accounts receivable, which are specific accounting metrics or concepts.