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

When making keep or replace decisions, management should consider which of the following?

Costs that are the same under both options

Historical purchase price of the asset

Sunk costs that have already been incurred

Relevant costs and benefits that differ between alternatives

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Verified step by step guidance

Understand the concept of relevant costs: Relevant costs are those costs and benefits that differ between decision alternatives. They are the only costs that should be considered when making decisions, as they directly impact the outcome.

Identify irrelevant costs: Costs that are the same under both options, historical purchase prices, and sunk costs are considered irrelevant because they do not change regardless of the decision made.

Focus on future costs and benefits: Relevant costs are future-oriented and include any incremental costs or savings that arise from choosing one alternative over another.

Analyze the alternatives: Compare the costs and benefits of each option, ensuring that only the relevant costs and benefits are included in the analysis.

Make the decision: Based on the comparison of relevant costs and benefits, choose the alternative that provides the greatest net benefit or minimizes costs.