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

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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Multiple Choice

Balance sheet accounts are considered to be:

Contra-revenue accounts

Permanent accounts

Temporary accounts

Nominal accounts

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Verified step by step guidance

Understand the classification of accounts: In financial accounting, accounts are classified into two main categories: permanent accounts and temporary accounts. Permanent accounts are those that carry their balances forward to the next accounting period, while temporary accounts are closed at the end of the accounting period.

Identify the nature of balance sheet accounts: Balance sheet accounts include assets, liabilities, and equity. These accounts represent the financial position of a company at a specific point in time and are not closed at the end of the accounting period.

Recognize the characteristics of permanent accounts: Permanent accounts maintain their balances across accounting periods. For example, the cash account, accounts receivable, and retained earnings are carried forward to the next period.

Differentiate from temporary accounts: Temporary accounts, such as revenues, expenses, and dividends, are closed to retained earnings at the end of the accounting period to reset their balances to zero for the next period.

Conclude that balance sheet accounts are permanent accounts: Since balance sheet accounts are not closed and their balances are carried forward, they are classified as permanent accounts.