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 a source of assets in accounting?

Payment of expenses

Borrowing from creditors

Revenue earned from sales

Owner's investment

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Verified step by step guidance

Understand the concept of 'sources of assets': In accounting, sources of assets refer to transactions or events that increase the resources (assets) of a business. Common sources include borrowing, revenue generation, and owner contributions.

Analyze each option: Review each option provided in the question to determine whether it contributes to the increase of assets.

Option 1 - Payment of expenses: Expenses are costs incurred by the business, which typically reduce assets (e.g., cash) rather than increase them. This is not a source of assets.

Option 2 - Borrowing from creditors: Borrowing increases assets (e.g., cash) while creating a liability (e.g., loan payable). This is a source of assets.

Option 3 - Revenue earned from sales and Option 4 - Owner's investment: Both revenue from sales and owner's investment increase assets (e.g., cash or accounts receivable for sales, and cash or other assets contributed by the owner). These are sources of assets.