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 an asset exchange transaction?

Purchasing equipment by paying cash

Receiving cash from issuing common stock

Paying off a loan with cash

Earning revenue on account

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Verified step by step guidance

Step 1: Understand the concept of an asset exchange transaction. An asset exchange transaction occurs when one asset is exchanged for another asset, meaning there is no net change in the total assets of the company.

Step 2: Analyze the first option: 'Purchasing equipment by paying cash.' This involves exchanging one asset (cash) for another asset (equipment). Since both are assets, this qualifies as an asset exchange transaction.

Step 3: Analyze the second option: 'Receiving cash from issuing common stock.' This transaction increases assets (cash) and equity (common stock), but it does not involve exchanging one asset for another. Therefore, it is not an asset exchange transaction.

Step 4: Analyze the third option: 'Paying off a loan with cash.' This transaction decreases an asset (cash) and decreases a liability (loan payable). Since it involves a reduction in liabilities rather than an exchange of assets, it is not an asset exchange transaction.

Step 5: Analyze the fourth option: 'Earning revenue on account.' This transaction increases assets (accounts receivable) and increases equity (revenue). It does not involve exchanging one asset for another, so it is not an asset exchange transaction.