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

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Multiple Choice

Which of the following is NOT a transaction to be recorded in the accounting records of a company?

The company hires a new manager, but no contract is signed and no payment is made yet.

The company receives payment from a customer for services rendered.

The company pays rent for the current month.

The company purchases office supplies for cash.

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Verified step by step guidance

Step 1: Understand the definition of a transaction in accounting. A transaction is an event that has a financial impact on the company and can be measured reliably in monetary terms.

Step 2: Analyze each option provided in the problem to determine whether it qualifies as a transaction. For example, receiving payment from a customer for services rendered is a transaction because it involves a financial exchange and can be recorded in monetary terms.

Step 3: Evaluate the option where the company pays rent for the current month. This is a transaction because it involves a financial outflow and affects the company's financial records.

Step 4: Consider the option where the company purchases office supplies for cash. This is also a transaction because it involves a financial exchange and impacts the company's assets and cash balance.

Step 5: Examine the option where the company hires a new manager but no contract is signed and no payment is made yet. This is NOT a transaction because it does not involve a financial exchange or measurable monetary impact at this stage.