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 a noncash transaction?

Issuing common stock in exchange for equipment

Purchasing inventory with cash

Receiving cash from customers for services rendered

Paying salaries to employees

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Verified step by step guidance

Understand the concept of noncash transactions: These are transactions that do not involve the exchange of cash but still impact the financial statements. Examples include barter transactions or exchanges of assets for equity.

Analyze each option provided in the problem: Determine whether cash is involved in the transaction or if it is a noncash transaction.

Option 1: Issuing common stock in exchange for equipment. This involves exchanging equity (common stock) for equipment, which does not involve cash. This is a noncash transaction.

Option 2: Purchasing inventory with cash. This involves the use of cash to acquire inventory, making it a cash transaction.

Option 3: Receiving cash from customers for services rendered and Option 4: Paying salaries to employees both involve cash exchanges, making them cash transactions. Therefore, the correct answer is Option 1.