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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

Ordering office supplies can be described as which of the following types of activities?

A financing activity

An administrative activity

A revenue-generating activity

A cost of goods sold activity

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Verified step by step guidance

Understand the nature of the activity: Ordering office supplies is a routine task that supports the general operations of a business rather than directly generating revenue or being tied to financing or production.

Eliminate options that do not fit: A financing activity involves raising capital (e.g., issuing stock or borrowing funds), which is unrelated to ordering office supplies. Similarly, a revenue-generating activity involves activities that directly produce income, which ordering supplies does not do.

Consider the administrative aspect: Administrative activities are those that support the overall functioning of the business, such as managing resources, maintaining records, or ensuring smooth operations. Ordering office supplies falls under this category.

Exclude cost of goods sold activity: Cost of goods sold (COGS) refers to the direct costs associated with producing goods sold by a company, such as raw materials and labor. Office supplies are not part of production costs.

Conclude that ordering office supplies is an administrative activity, as it supports the business's operations without directly contributing to revenue generation or production.