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

Which of the following best defines an asset in accounting?

A reduction in the value of a company's equity due to expenses.

A record of all transactions affecting a company's cash balance.

A resource owned or controlled by a company that is expected to provide future economic benefits.

An obligation arising from past events that will result in an outflow of resources.

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Verified step by step guidance

Step 1: Understand the definition of an asset in accounting. An asset is a resource owned or controlled by a company that is expected to provide future economic benefits.

Step 2: Analyze the options provided in the question. Each option represents a different accounting concept, and you need to identify which one aligns with the definition of an asset.

Step 3: Eliminate incorrect options. For example, 'A reduction in the value of a company's equity due to expenses' refers to expenses, not assets. Similarly, 'A record of all transactions affecting a company's cash balance' refers to cash flow or bookkeeping, not assets. Lastly, 'An obligation arising from past events that will result in an outflow of resources' refers to liabilities, not assets.

Step 4: Focus on the correct option: 'A resource owned or controlled by a company that is expected to provide future economic benefits.' This matches the definition of an asset in accounting.

Step 5: Conclude that the correct answer is the option that defines an asset as a resource owned or controlled by a company that is expected to provide future economic benefits.