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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

What is the best reason to record income at the top of a budget?

It helps to prioritize discretionary spending over fixed costs.

It establishes the total funds available before planning expenses.

It ensures that all expenses are automatically balanced.

It allows for easier calculation of tax liabilities.

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Verified step by step guidance

Understand the purpose of recording income at the top of a budget. Income represents the total funds available for allocation to various expenses, savings, and investments.

Recognize that fixed costs (e.g., rent, utilities) and discretionary spending (e.g., entertainment, dining out) are planned based on the available income. Recording income first ensures that expenses are planned within the limits of available funds.

Consider the importance of establishing the total funds available before planning expenses. This step helps avoid overspending and ensures financial stability by aligning expenses with income.

Note that recording income at the top does not automatically balance expenses or calculate tax liabilities. These are separate processes that depend on detailed expense tracking and tax calculations.

Conclude that the best reason to record income at the top of a budget is to establish the total funds available before planning expenses, ensuring a structured and realistic financial plan.