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

Paying for oil, gas, maintenance, and repairs are all examples of which type of accounting expense?

Capital expenditures

Non-operating expenses

Financing expenses

Operating expenses

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Verified step by step guidance

Understand the concept of operating expenses: These are costs incurred during the normal course of business operations, such as utilities, rent, salaries, and maintenance.

Analyze the nature of the expenses mentioned in the problem: Oil, gas, maintenance, and repairs are recurring costs necessary for the day-to-day functioning of a business.

Differentiate operating expenses from other types of expenses: Capital expenditures are investments in long-term assets, non-operating expenses are costs unrelated to core business activities, and financing expenses are related to borrowing or raising capital.

Recognize that the expenses listed (oil, gas, maintenance, and repairs) are directly tied to the ongoing operations of the business, making them operating expenses.

Conclude that the correct classification for these expenses is operating expenses, as they are essential for maintaining the business's regular operations.