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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

Activities such as using materials and labor to produce finished products are considered which type of activities?

Investing activities

Non-cash activities

Financing activities

Operating activities

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Verified step by step guidance

Step 1: Understand the concept of operating activities. Operating activities are the primary revenue-generating activities of a business, including production, sales, and delivery of goods or services, as well as other activities that are not investing or financing activities.

Step 2: Review the types of activities listed in the problem. Investing activities involve the purchase or sale of long-term assets, financing activities involve transactions with creditors and investors, and non-cash activities are transactions that do not involve cash flows.

Step 3: Analyze the given scenario. Using materials and labor to produce finished products is part of the core operations of a business, which aligns with the definition of operating activities.

Step 4: Compare the scenario to the definitions of the other activity types. Producing finished products does not involve acquiring or disposing of long-term assets (investing), nor does it involve raising funds or repaying debts (financing). It also involves cash flows, so it is not a non-cash activity.

Step 5: Conclude that the correct classification for activities such as using materials and labor to produce finished products is operating activities, as these are directly related to the day-to-day operations of the business.