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 is considered a type of income in financial accounting?

Accounts payable

Revenue from sales

Prepaid expenses

Interest income

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Understand the concept of income in financial accounting: Income refers to the earnings generated by a business from its operations or investments. Common types of income include revenue from sales, interest income, rental income, and dividend income.

Analyze the options provided: Accounts payable and prepaid expenses are not types of income. Accounts payable is a liability, representing amounts owed to creditors, while prepaid expenses are assets, representing payments made in advance for goods or services.

Identify the correct types of income: Revenue from sales is considered operating income, as it is earned from the primary business activities of selling goods or services. Interest income is considered non-operating income, as it is earned from investments or financing activities.

Differentiate between operating and non-operating income: Operating income arises from the core business activities, such as sales revenue, while non-operating income arises from secondary activities, such as interest income or gains from investments.

Conclude that the correct answers are 'Revenue from sales' and 'Interest income,' as these are both types of income in financial accounting, while accounts payable and prepaid expenses are not.