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

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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 statements regarding equity is true?

Equity decreases when owners invest additional capital into the business.

Equity is classified as a current liability on the balance sheet.

Equity is only affected by the company's revenues and expenses.

Equity represents the residual interest in the assets of an entity after deducting liabilities.

Previous problemNext problem

Verified step by step guidance

Step 1: Begin by understanding the concept of equity in financial accounting. Equity represents the residual interest in the assets of an entity after deducting liabilities. It is essentially the ownership interest held by shareholders or owners in the business.

Step 2: Analyze the first statement: 'Equity decreases when owners invest additional capital into the business.' This is incorrect because equity increases when owners invest additional capital, as it adds to the ownership interest in the business.

Step 3: Evaluate the second statement: 'Equity is classified as a current liability on the balance sheet.' This is incorrect because equity is not a liability; it is a separate section on the balance sheet that represents ownership interest.

Step 4: Assess the third statement: 'Equity is only affected by the company's revenues and expenses.' This is incorrect because equity is affected by multiple factors, including owner investments, withdrawals, revenues, expenses, and other comprehensive income.

Step 5: Confirm the correct statement: 'Equity represents the residual interest in the assets of an entity after deducting liabilities.' This is accurate and aligns with the definition of equity in financial accounting.