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

5. Inventory

Financial Statement Effects of Inventory Costing Methods

Financial Accounting

5. Inventory

Financial Statement Effects of Inventory Costing Methods

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Multiple Choice

Which of the following is NOT a common income performance measure used in financial accounting?

Operating Income

Total Assets

Gross Profit

Net Income

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Understand the concept of income performance measures: These are metrics used to evaluate a company's profitability and financial performance over a specific period. Common examples include Operating Income, Gross Profit, and Net Income.

Review the definitions of the given options: Operating Income is the profit generated from core business operations, excluding non-operating items. Gross Profit is the difference between revenue and the cost of goods sold. Net Income is the total profit after all expenses, taxes, and costs have been deducted.

Analyze the option 'Total Assets': Total Assets represent the sum of everything a company owns, including cash, inventory, property, and equipment. It is a balance sheet item and not a measure of income performance.

Compare 'Total Assets' with the other options: Unlike Operating Income, Gross Profit, and Net Income, Total Assets does not provide information about profitability or income performance. It is used to assess financial position rather than income generation.

Conclude that 'Total Assets' is NOT a common income performance measure because it is unrelated to evaluating profitability or income performance, making it the correct answer to the question.