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 business transaction?

Discussing a potential contract with a supplier

Planning next year's budget

Purchasing inventory for cash

Hiring a new employee

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Verified step by step guidance

Step 1: Understand the definition of a business transaction. A business transaction is an economic event that is recorded in the accounting records because it affects the financial position of the business. It typically involves the exchange of goods, services, or money.

Step 2: Analyze each option provided in the problem to determine if it qualifies as a business transaction. For example, discussing a potential contract with a supplier does not involve an exchange of goods, services, or money, so it is not a business transaction.

Step 3: Evaluate the option of planning next year's budget. This is a preparatory activity and does not directly affect the financial position of the business, so it is not a business transaction.

Step 4: Consider the option of purchasing inventory for cash. This involves the exchange of money for goods (inventory), which directly impacts the financial position of the business and is therefore a business transaction.

Step 5: Review the option of hiring a new employee. While this is an important operational activity, it does not immediately involve an exchange of goods, services, or money that would be recorded in the accounting records, so it is not a business transaction.