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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Struggling with Financial Accounting?

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Multiple Choice

To buy goods on credit means to:

Lease goods for a specific period

Pay for goods immediately with cash

Receive goods as a donation

Purchase goods now and pay for them at a later date

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Verified step by step guidance

Understand the concept of buying goods on credit: This refers to a transaction where a buyer acquires goods or services but defers payment to a later date, typically under agreed terms.

Recognize the difference between buying on credit and other methods: Buying on credit is distinct from paying immediately with cash, leasing goods, or receiving goods as a donation.

Identify the accounting implications: When goods are purchased on credit, the buyer records a liability (Accounts Payable) in their financial statements, representing the obligation to pay the supplier.

Consider the terms of credit: Credit purchases often come with specific payment terms, such as due dates or discounts for early payment, which should be carefully reviewed and adhered to.

Understand the importance of tracking: Properly recording and managing credit purchases is crucial for maintaining accurate financial records and ensuring timely payment to suppliers.