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 best defines an asset in accounting?

An obligation arising from past events, the settlement of which is expected to result in an outflow of resources.

A resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity.

The residual interest in the assets of the entity after deducting liabilities.

A record of all financial transactions made by a business during a specific period.

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Verified step by step guidance

Step 1: Understand the definition of an asset in accounting. An asset is a resource controlled by an entity as a result of past events, and it is expected to provide future economic benefits to the entity.

Step 2: Compare the given options to the definition of an asset. Eliminate options that do not align with the concept of a resource providing future economic benefits.

Step 3: Analyze the first option: 'An obligation arising from past events, the settlement of which is expected to result in an outflow of resources.' This describes a liability, not an asset.

Step 4: Analyze the third option: 'The residual interest in the assets of the entity after deducting liabilities.' This describes equity, not an asset.

Step 5: Analyze the fourth option: 'A record of all financial transactions made by a business during a specific period.' This describes a financial statement or ledger, not an asset. The correct answer is the second option, which matches the definition of an asset.