Table of contents

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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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

Which of the following represents the expanded accounting equation?

Assets = Liabilities + Owner's Equity

Assets + Liabilities = Owner's Equity

Assets = Owner's Equity - Liabilities

Assets = Liabilities + Owner's Capital + Revenues - Expenses - Drawings

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Verified step by step guidance

Step 1: Begin by understanding the basic accounting equation, which is Assets = Liabilities + Owner's Equity. This equation forms the foundation of financial accounting.

Step 2: Expand the basic accounting equation to include additional components that affect Owner's Equity. These components are Revenues, Expenses, and Drawings.

Step 3: Recognize that Revenues increase Owner's Equity, while Expenses and Drawings decrease Owner's Equity. Incorporate these changes into the equation.

Step 4: Write the expanded accounting equation as: Assets = Liabilities + Owner's Capital + Revenues - Expenses - Drawings. This equation accounts for all changes in Owner's Equity.

Step 5: Use this expanded equation to analyze transactions and ensure the accounting records remain balanced, reflecting the true financial position of the business.