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

The Financial Statements

Financial Accounting

1. Introduction to Accounting

The Financial Statements

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 type of companies will always have operating expenses reported on their income statement?

Only manufacturing companies

All companies, regardless of industry

Only merchandising companies

Only service companies

Previous problemNext problem

Verified step by step guidance

Understand the concept of operating expenses: Operating expenses are costs incurred during the normal course of business operations, such as rent, utilities, salaries, and marketing expenses. These are reported on the income statement.

Recognize that operating expenses are not industry-specific: All companies, regardless of whether they are manufacturing, merchandising, or service-based, incur operating expenses as part of their business activities.

Review the structure of an income statement: The income statement includes revenues, cost of goods sold (if applicable), operating expenses, and other expenses to calculate net income. Operating expenses are a standard component of this financial statement.

Consider examples of operating expenses across industries: Manufacturing companies may report factory overhead, merchandising companies may report store rent, and service companies may report employee salaries. Despite differences in the nature of expenses, all industries report operating expenses.

Conclude that operating expenses are universal: Since all companies engage in activities that require resources and incur costs, operating expenses are always reported on their income statements, regardless of the industry.