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 transactions would NOT create a cash flow?

Purchasing equipment by signing a long-term note payable

Collecting accounts receivable

Paying dividends to shareholders

Issuing common stock for cash

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Verified step by step guidance

Step 1: Understand the concept of cash flow. Cash flow refers to the movement of cash into or out of a business. Transactions that involve the exchange of cash directly impact cash flow, while non-cash transactions do not.

Step 2: Analyze the first option: 'Purchasing equipment by signing a long-term note payable.' This transaction does not involve the exchange of cash immediately. Instead, it creates a liability (note payable) and an asset (equipment), making it a non-cash transaction.

Step 3: Analyze the second option: 'Collecting accounts receivable.' When accounts receivable are collected, cash is received from customers, which directly impacts cash flow. This is a cash inflow.

Step 4: Analyze the third option: 'Paying dividends to shareholders.' Paying dividends involves the outflow of cash to shareholders, which directly impacts cash flow. This is a cash outflow.

Step 5: Analyze the fourth option: 'Issuing common stock for cash.' When common stock is issued for cash, the company receives cash from investors, which directly impacts cash flow. This is a cash inflow.