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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following statements best defines an asset?

An asset is the residual interest in the assets of the entity after deducting liabilities.

An asset is a resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity.

An asset is any obligation that a company must settle in the future.

An asset is a decrease in economic benefits during the accounting period in the form of outflows or depletions of assets.

Previous problemNext problem

Verified step by step guidance

Step 1: Begin by understanding the definition of an asset in financial accounting. An asset is a resource controlled by an entity as a result of past events, and it is expected to provide future economic benefits to the entity.

Step 2: Analyze the options provided in the problem. Each statement should be evaluated to determine whether it aligns with the definition of an asset.

Step 3: Eliminate incorrect options. For example, the statement 'An asset is the residual interest in the assets of the entity after deducting liabilities' refers to equity, not an asset. Similarly, 'An asset is any obligation that a company must settle in the future' describes a liability, not an asset. Lastly, 'An asset is a decrease in economic benefits during the accounting period in the form of outflows or depletions of assets' refers to expenses, not assets.

Step 4: Identify the correct statement. The correct definition of an asset is: 'An asset is a resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity.'

Step 5: Conclude by emphasizing the importance of understanding the distinction between assets, liabilities, equity, and expenses in financial accounting, as these concepts form the foundation of the accounting equation and financial reporting.