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 is NOT an example of income in financial accounting?

Owner's capital contribution

Interest earned on investments

Revenue from sales

Rental income received

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Verified step by step guidance

Step 1: Understand the concept of 'income' in financial accounting. Income generally refers to the earnings generated from the core operations of a business or other sources, such as investments or rental activities. It is distinct from contributions made by owners.

Step 2: Analyze each option provided in the question. Determine whether each item qualifies as income based on its nature and definition in financial accounting.

Step 3: Evaluate 'Owner's capital contribution.' This represents the funds or assets provided by the owner to the business and is classified as equity, not income, because it is not earned through business operations or external sources.

Step 4: Evaluate 'Interest earned on investments.' This is considered income because it is generated from external sources, specifically from investments made by the business.

Step 5: Evaluate 'Revenue from sales' and 'Rental income received.' Both are examples of income because they are earned through the business's core operations (sales revenue) or external sources (rental income).